RBNZ: Little chance of rate hike until 2019 - Westpac

Sandeep Kanihama FXStreet Contributor

Analysts at Westpac note that NZ markets continue to assign little chance of an RBNZ rate hike until 2019, with May 2019 fully priced but Nov 2018 under 50%.

Key Quotes

“That is keeping the short end well and truly anchored, with little on the NZ event calendar this week to disturb that caution.”

“One result of an RBNZ-anchored short end is that short end NZGBs are seeing greater demand than long end NZGBs. While the difference is historically pronounced, it could become even more so. As NZ-US yield spreads have declined, the sensitivity of NZ rates to US rates has increased.”

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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