15 Jul 2013
Flash: RBNZ changes tactics? – NAB
FXstreet.com (New York) - Yesterday’s Chinese data helped the NZD and AUD start the week on the front foot, suggests Mike Jones, an analyst at BNZ.
Indeed, the slowing in GDP growth to 7.5% was bang in line with expectations, but probably a little stronger than the ‘whisper’ numbers circulating following recent softish rhetoric from the Chinese administration.
More recently however, the NZD/USD simply traced volatility in the USD.
“Media reports suggesting the RBNZ is on the verge of introducing ‘speed limits’ on high LVR mortgage lending could impact the NZD today. Of course, the limits have been in the wings for a while. However, reports suggest they may be introduced earlier, and be more aggressive, than first thought. The risk is that the RBNZ’s preference for using macro prudential tools, rather than interest rates, to slow the housing market could see OIS markets take out some of the (45bps worth) of RBNZ tightening priced into the interest rate curve.” Jones warns.
Indeed, the slowing in GDP growth to 7.5% was bang in line with expectations, but probably a little stronger than the ‘whisper’ numbers circulating following recent softish rhetoric from the Chinese administration.
More recently however, the NZD/USD simply traced volatility in the USD.
“Media reports suggesting the RBNZ is on the verge of introducing ‘speed limits’ on high LVR mortgage lending could impact the NZD today. Of course, the limits have been in the wings for a while. However, reports suggest they may be introduced earlier, and be more aggressive, than first thought. The risk is that the RBNZ’s preference for using macro prudential tools, rather than interest rates, to slow the housing market could see OIS markets take out some of the (45bps worth) of RBNZ tightening priced into the interest rate curve.” Jones warns.