19 May 2015
Higher odds of an RBNZ rate cut - RBS
FXStreet (Bali) - The FX Strategy Team at RBS notes that the new macroprudential measures in New Zealand increases the odds of a rate cut in the coming months.
Key Quotes
"RBNZ has moved ahead with macroprudential measures to slow investor lending, announced last week and set to be implemented in October."
"The central bank expects banks to start being more prudent immediately, and this increases the odds of a rate cut in the coming months."
"New Zealand reported record growth in real retail sales last week, suggesting an above-trend growth rate in Q1. However, the data also showed sales volume was driven by price falls, suggesting the strong NZD is boosting spending on imported goods."
"Attention this week turns to inflation expectations data: Another low number could firm up rate cut expectations. Downside may resume for the NZD."
Key Quotes
"RBNZ has moved ahead with macroprudential measures to slow investor lending, announced last week and set to be implemented in October."
"The central bank expects banks to start being more prudent immediately, and this increases the odds of a rate cut in the coming months."
"New Zealand reported record growth in real retail sales last week, suggesting an above-trend growth rate in Q1. However, the data also showed sales volume was driven by price falls, suggesting the strong NZD is boosting spending on imported goods."
"Attention this week turns to inflation expectations data: Another low number could firm up rate cut expectations. Downside may resume for the NZD."