7 Sep 2015
RBNZ preview; rate cut on the cards - TDS
FXStreet (Barcelona) - Analysts at TD Securities noted the forthcoming RBNZ decision coming up on the 9th September this week.
Key Quotes:
"Chatter on the ground in New Zealand is hinting of a “home grown recession”, but we disagree."
"Recent data flows of record migration, strong business investment, and consecutive price increases in the Fonterra dairy auction means recession risks are slight at best."
"Having said that, growth momentum has faded (from admittedly high levels) and inflation risks are tilted to the downside, paving the way for the RBNZ to cut and “build in” another cut by year-end into their bank bill projections alongside lower growth and inflation projections."
Key Quotes:
"Chatter on the ground in New Zealand is hinting of a “home grown recession”, but we disagree."
"Recent data flows of record migration, strong business investment, and consecutive price increases in the Fonterra dairy auction means recession risks are slight at best."
"Having said that, growth momentum has faded (from admittedly high levels) and inflation risks are tilted to the downside, paving the way for the RBNZ to cut and “build in” another cut by year-end into their bank bill projections alongside lower growth and inflation projections."