RBNZ: December to be a close call – Westpac

FXStreet (Delhi) – Imre Speizer, Senior Markets Strategist at Westpac, suggests that markets have slightly increased the chance the RBNZ will ease by 25bp on 10 December, to 56%, but a full cut is not priced until January 2016.

Key Quotes

“We assess the chance of a December at around 70%.”

“What could swing the odds of a cut one way or the other ahead of 10 December? There’s a dairy auction on 1 December (a price bounce, currently predicted by futures, would argue towards not cutting), and US payrolls on 27 November (a strong number would push the USD higher and argue towards not cutting).”