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10 Jun 2014
RBNZ to leave rates unchanged - RBS
FXStreet (Bali) - RBS Strategists expect the RBNZ to leave rates unchanged at the June meeting.
Key Quotes
"The RBNZ June decision is due late in the US session tomorrow. The RBNZ will release a post decision statement alongside the quarterly Monetary Policy Statement (MPS), which includes new forecasts for inflation, GDP, and the 90-day Bank Bill rate."
Amid a still-strong currency, softer than expected first quarter inflation, and falling dairy prices, we believe the impetus to hike interest rates for a third consecutive month in June is not as clear as the market has currently priced in."
"We are against the consensus, anticipating the RBNZ to leave rates unchanged at the June meeting, instead taking on a “wait and see” approach."
"Should the RBNZ indeed hike the OCR tomorrow, we see the risks to the signalling language in the press release and Governor Wheeler’s press conference as leaning in the dovish direction."
Key Quotes
"The RBNZ June decision is due late in the US session tomorrow. The RBNZ will release a post decision statement alongside the quarterly Monetary Policy Statement (MPS), which includes new forecasts for inflation, GDP, and the 90-day Bank Bill rate."
Amid a still-strong currency, softer than expected first quarter inflation, and falling dairy prices, we believe the impetus to hike interest rates for a third consecutive month in June is not as clear as the market has currently priced in."
"We are against the consensus, anticipating the RBNZ to leave rates unchanged at the June meeting, instead taking on a “wait and see” approach."
"Should the RBNZ indeed hike the OCR tomorrow, we see the risks to the signalling language in the press release and Governor Wheeler’s press conference as leaning in the dovish direction."