29 Jan 2015
RBNZ slightly more dovish - Nomura
FXStreet (Bali) - According to Charles St-Arnaud, Economist at Nomura, the RBNZ statement is slightly more dovish than the one issued in December, no longer makes reference to the need for a rate hike in the future.
Key Quotes
"Overall, while the RBNZ kept its policy rate on hold, the statement is slightly more dovish than the one issued in December, as it no longer makes reference to the need for a rate hike in the future."
"However, we do not believe that it means the RBNZ is shifting toward a dovish stance. As long as the domestic economy does not show clear signs of weakness and the currency continues to the drift lower, the RBNZ will not have any incentive to cut rates."
"We continue to believe the RBNZ will keep its policy rate unchanged until early 2016. The market reacted to the dovish statement by pushing the NZD lower, depreciating by 1.5% against the USD and 1.1% on TWI basis, and the rates rallied."
Key Quotes
"Overall, while the RBNZ kept its policy rate on hold, the statement is slightly more dovish than the one issued in December, as it no longer makes reference to the need for a rate hike in the future."
"However, we do not believe that it means the RBNZ is shifting toward a dovish stance. As long as the domestic economy does not show clear signs of weakness and the currency continues to the drift lower, the RBNZ will not have any incentive to cut rates."
"We continue to believe the RBNZ will keep its policy rate unchanged until early 2016. The market reacted to the dovish statement by pushing the NZD lower, depreciating by 1.5% against the USD and 1.1% on TWI basis, and the rates rallied."