RBNZ: Wheeler offering bullish and less dovish picture

Ross J Burland FXStreet

RBNZ governor Wheeler dropped hints that their will not be further rate cuts at the February meeting should the status quo remain intact. The following is a good insight for the market to chew on while there is a void between November's meeting and February 2017's.

Wheeler explained that the growth prospects look promising.

Further quotes:

"Current policy should see inflation reach 2% target
Monitor policy to remain accommodative
Trend may finally be turning on NZ dollar
Low point for CPI has probably passed
Prospects good for strong growth over next 18 months
House price inflation much higher than desirable
US growth prospects positive for N.Z.
Long-term inflation expectations remain well anchored
Official cash rate projections highly conditional on assumptions around exchange rate, migration,, house price inflation
Different outcomes from those assumed in November monetary policy statement could imply a different policy path
In November monetary policy statement the bank assessed overall balance of risks to be on the downside
Projected policy settings will help generate enough growth to have inflation settle near middle of target range.

NZD/USD is supported on the comments, but just 10 pips higher.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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