25 Jul 2013
Flash: RBNZ more hawkish than expected - Westpac
FXstreet.com (Barcelona) - The RBNZ’s OCR Review was more hawkish than Westpac's FX Strategist Sean Callow had expected.
Key quotes
"There were three notable changes to the one page statement. Most importantly, in the final policy paragraph, it emphasized the next policy change will be to tighten (“....removal of monetary stimulus will likely be needed...”). In addition, in paragraph 3, growth in the economy is seen as becoming “more widespread”. Also, paragraph 7 was a new inclusion emphasizing the upside risks from the housing market and construction sector."
"We think the market was positioned for a neutral outcome and the initial reactions should persist throughout the day. The 2yr swap rate has risen 4bp to 3.26% on the news so far but could extend to 3.30%."
Key quotes
"There were three notable changes to the one page statement. Most importantly, in the final policy paragraph, it emphasized the next policy change will be to tighten (“....removal of monetary stimulus will likely be needed...”). In addition, in paragraph 3, growth in the economy is seen as becoming “more widespread”. Also, paragraph 7 was a new inclusion emphasizing the upside risks from the housing market and construction sector."
"We think the market was positioned for a neutral outcome and the initial reactions should persist throughout the day. The 2yr swap rate has risen 4bp to 3.26% on the news so far but could extend to 3.30%."