RBNZ will not hike until 2020? - Nomura
|Analysts at Nomura explained that the RBNZ’s February statement showed that it does not have a rate hike fully priced until Q1 2020.
Key Quotes:
"The market, in contrast, is pricing 18bp of hikes over the next 12 months, and has one 25bp hike fully priced in by mid-2019. Our thoughts are fairly similar to the market’s at this point."
"However, big changes are afoot at the RBNZ, with the new governor coming in, a new policy target agreement expected to be signed this month, and with a widely expected move towards a dual mandate, downplaying somewhat the primacy of inflation targeting, which the RBNZ helped pioneer in 1989. We may need to fine-tune our view on the RBNZ based on these coming developments."
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