NZ GDP: Pausing at trend growth - TDS

Sandeep Kanihama FXStreet Contributor

New Zealand’s March quarter GDP rose by +0.5%/qtr, matching median expectations, to expand by 2.7%/y, notes Annette Beacher, Chief Asia-Pacific Macro Strategist at TDS.

Key Quotes

“The OIS strip remains flat at 1.75% throughout H2 this year, lifting to 24% priced for +25bp by end-Q1.”

“We expect the OCR to remain at 1.75% (as does unanimous consensus), the Governor to muse that the next move could be “up or down” as per the May policy assessment, and confirm that “this level will remain for a considerable period of time”.”

“This non-commitment by the RBNZ to adjust the cash rate one way or the other leaves us neutral the NZD at current levels.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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