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1 Feb 2016
NZD: 100% probability that RBNZ will cut once more this year - Westpac
FXStreet (Delhi) – Imre Speizer, Senior Market Strategist at Westpac, notes that the market pricing for the RBNZ slipped further, with a terminal rate of 2.21% now price in, i.e. a 100% probability the RBNZ will cut once more this year, and a 16% probability it will cut twice.
Key Quotes
“We now expect the RBNZ to cut by 25bp to 2.25% in March and again to 2.0% in June (a change from June and August) following the RBNZ’s OCR Review last week which made its easing bias explicit and as unconditional as a bias could be.
The next major monetary policy event will be the 3 Feb annual speech by Governor Wheeler, and Assistant Governor McDermott’s speech the next day on policy guidance. We will be looking for clues on timing.”
Key Quotes
“We now expect the RBNZ to cut by 25bp to 2.25% in March and again to 2.0% in June (a change from June and August) following the RBNZ’s OCR Review last week which made its easing bias explicit and as unconditional as a bias could be.
The next major monetary policy event will be the 3 Feb annual speech by Governor Wheeler, and Assistant Governor McDermott’s speech the next day on policy guidance. We will be looking for clues on timing.”