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22 Apr 2015
RBNZ expected to hold rates until a September 2016 hike – Westpac
FXStreet (Barcelona) - According to Westpac, the Reserve Bank of New Zealand is likely to maintain rates on hold until September 2016 and resume a hawkish stance.
Key Quotes
“In its 12 Mar MPS, the RBNZ retained the reference to the next move in the OCR being “either up or down”.”
“However, the key message in the quarterly statement and the accompanying media appearances by RBNZ governor Wheeler was that rates were very likely to remain on hold into 2016.”
“Indeed Westpac expects the OCR to remain at 3.5% until a Sep 2016 hike. Still, with so many central banks in easing mode and global inflation mostly undershooting forecasts, markets should continue to price in at least some risk of a rate cut this year.”
Key Quotes
“In its 12 Mar MPS, the RBNZ retained the reference to the next move in the OCR being “either up or down”.”
“However, the key message in the quarterly statement and the accompanying media appearances by RBNZ governor Wheeler was that rates were very likely to remain on hold into 2016.”
“Indeed Westpac expects the OCR to remain at 3.5% until a Sep 2016 hike. Still, with so many central banks in easing mode and global inflation mostly undershooting forecasts, markets should continue to price in at least some risk of a rate cut this year.”