11 Dec 2014
Talk of rate cuts in NZ misguided - BNZ
FXStreet (Bali) - Stephen Toplis, head of research at Bank of New Zealand, notes that talk of rate cuts in New Zealand at any time in the foreseeable future is misguided.
Key Quotes
"Whatever the actual path of interest rates over the next few quarters, talk of rate cuts in New Zealand at any time in the foreseeable future is misguided. Such talk has risen in volume following the rush by forecasters across the Tasman to build in rate cuts in Australia."
"There may be some justification for such across the ditch but here there is none: growth is above trend; capacity pressures are increasing; the unemployment rate is falling; and the housing market is again building up a head of steam."
"In this environment the RBNZ is very wise to maintain its tightening bias.
While there will always be those suffering duress, for New Zealand, in aggregate, Christmas 2014 is most certainly a season to be jolly."
"New Zealand’s economic progress is the envy of many. We have: - rising asset prices; - strong growth; - significant job creation; and - no inflation. Cause to celebrate indeed! Enjoy it while it lasts!"
Key Quotes
"Whatever the actual path of interest rates over the next few quarters, talk of rate cuts in New Zealand at any time in the foreseeable future is misguided. Such talk has risen in volume following the rush by forecasters across the Tasman to build in rate cuts in Australia."
"There may be some justification for such across the ditch but here there is none: growth is above trend; capacity pressures are increasing; the unemployment rate is falling; and the housing market is again building up a head of steam."
"In this environment the RBNZ is very wise to maintain its tightening bias.
While there will always be those suffering duress, for New Zealand, in aggregate, Christmas 2014 is most certainly a season to be jolly."
"New Zealand’s economic progress is the envy of many. We have: - rising asset prices; - strong growth; - significant job creation; and - no inflation. Cause to celebrate indeed! Enjoy it while it lasts!"