NZ: CPI print disappoint markets - Rabobank

Markets were disappointed this morning as we saw Kiwi Q2 CPI come in much lower than expected at unchanged q-o-q and just 1.7% y-o-y, down from 2.2%, according to Michael Every, Senior Asia-Pacific Strategist at Rabobank.

Key Quotes

“So once again New Zealand is at the cutting edge, showing us all that inflation is going to be something in the rear-view mirror sooner than we think, in all probability. That should certainly help stay the RBNZ’s hand, and they can watch everyone else make the same mistake they did in raising rates a while back with a wry smile I can almost hear from Hong Kong. Nonetheless, USD sentiment is currently so bearish that NZD only dropped from around 0.73 to 0.7270 post-release, which is pretty small beer.”