5 Jun 2015
RBNZ might hold rates steady next week – TDS
FXStreet (Barcelona) - The TD Securities Team expects the RBNZ to refrain from a rate cut in its next week policy meeting, and see NZD outperformance ahead.
Key Quotes
“All eyes on the RBNZ in New Zealand on Thursday with the quarterly Monetary Policy Statement expected to demonstrate that the next move is down for the Official Cash Rate.”
“While many are of the view that the Bank is set to cut the OCR from 3.5% to 3.25%, we disagree. Rather, we expect a dovish tone and a clear easing bias via a downwardly sloping bank bill curve, hence expect bonds to outperform (vs Dollar Bloc peers) and the NZD to underperform, once the initial market “shock” of not easing has passed”
Key Quotes
“All eyes on the RBNZ in New Zealand on Thursday with the quarterly Monetary Policy Statement expected to demonstrate that the next move is down for the Official Cash Rate.”
“While many are of the view that the Bank is set to cut the OCR from 3.5% to 3.25%, we disagree. Rather, we expect a dovish tone and a clear easing bias via a downwardly sloping bank bill curve, hence expect bonds to outperform (vs Dollar Bloc peers) and the NZD to underperform, once the initial market “shock” of not easing has passed”