30 Mar 2015
Market speculating the RBNZ will ease – Westpac
FXStreet (Barcelona) - Imre Speizer, Senior Market Strategist at Westpac, views that the NZ curve indicates that market speculation for an OCR cut by the RBNZ exists.
Key Quotes
“The short end of the NZ curve remains depressed by market speculation the RBNZ will cut the OCR. Current OIS pricing has the OCR falling to 3.26% by January 2016.”
“The RBNZ’s latest Monetary Policy Statement did not discourage such speculation, significantly lowering its interest rate forecast and discussing a scenario where falling inflation expectations could warrant OCR cuts.”
“The next major catalysts for rates markets will be Q1 CPI (20 April) and the RBNZ’s OCR Review (30 April).”
Key Quotes
“The short end of the NZ curve remains depressed by market speculation the RBNZ will cut the OCR. Current OIS pricing has the OCR falling to 3.26% by January 2016.”
“The RBNZ’s latest Monetary Policy Statement did not discourage such speculation, significantly lowering its interest rate forecast and discussing a scenario where falling inflation expectations could warrant OCR cuts.”
“The next major catalysts for rates markets will be Q1 CPI (20 April) and the RBNZ’s OCR Review (30 April).”