RBNZ: No more rate cuts after NZ inflation surprise – Bloomberg

Dhwani Mehta FXStreet

The Reserve Bank of New Zealand (RBNZ) may not need to go for further interest rate cuts following an upside surprise to New Zealand’s Q4 CPI report, Bloomberg reports, citing Jarrod Kerr, Chief Economist at Kiwibank in Auckland.

Key takeaways

“The medium-term outlook for inflation looks stronger compared to just a few months ago.”

“Monetary conditions are easy enough.”

“Investors no longer expect the RBNZ to cut the official cash rate again.”

New Zealand’s CPI for Q4 2020 came in at 0.5% QoQ vs expected 0% and prior 0.7%.

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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