RBNZ: Patient, amid mixed messages – Nomura

Sandeep Kanihama FXStreet Contributor

Andrew Ticehurst, Research Analyst at Nomura, notes that the Reserve Bank of New Zealand (RBNZ) today announced an unchanged cash rate, at 1.75%, as was uniformly expected.

Key Quotes

“We see mixed messages on growth and inflation, but note less near-term momentum and more spare capacity, and more dovish forward guidance.”

“We remove our forecast for a 25bp increase in the official cash rate (OCR) in Q3 2019, leaving a single 25bp hike in Q4 2019.”

“Our AUD and NZD forecasts have implied AUD/NZD at around 1.10-1.11; we now see a risk of this trading a little higher, to around 1.12-1.13.”

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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