RBNZ: Staunchly Neutral – TDS

The RBNZ kept the cash rate on hold at 1.75% as expected as NZ rates and FX markets are little changed, reflecting the Banks’ firmly neutral rate outlook, explains the analysis team at TDS.

Key Quotes

“The Bank is firmly focused on offshore developments so until Spencer takes the RBNZ reins, the odds of a change in bias towards a hint of hawk are low.”

“The NZ forwards rate curve is steep and with the RBNZ not hawkish, this should see ongoing interest to receive rates via the forwards.”