RBNZ: Markets have priced a November OCR cut - Westpac

Sandeep Kanihama FXStreet Contributor

Imre Speizer, Research Analyst at Westpac, suggests that the markets have priced a November OCR cut again, after the RBNZ affirmed its explicit easing bias at yesterday’s OCR Review.

Key Quotes

“From around a 50% chance ahead of the announcement, it is now at a 72% chance. The RBNZ noted the main developments since the previous meeting in August, namely stronger economic growth and higher dairy prices; but also a higher exchange rate, early signs of cooler housing, and very low inflation. It left the impression that in net terms, there was nothing to warrant a change in policy outlook.

Indeed, the policy guidance paragraph was left completely intact, retaining the key phrase: “further easing will be likely.” We remain comfortable with our forecast of one more cut on 10 November followed by a lengthy on-hold period.”

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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