30 Oct 2013
Flash: RBNZ decision is due out - BBH
FXstreet.com (London) - Research teams at BBH note that the RBNZ decision is due out during the North American afternoon today at 4 PM EST, where it is expected to keep the policy rate steady at 2.5%.
Key Quotes:
“We would expect more jawboning about the strong currency, as Governor Wheeler has already made it clear that this is something that could impact RBNZ policy”.
“Meanwhile, Moody’s revealed that it discussed cutting New Zealand’s Aaa rating due to concerns about the current account deficit and vulnerability to external shocks. Moody’s official said that New Zealand has the largest negative net international investment position of the countries rated Aaa”.
“However, the official added that despite the discussion, it was decided to maintain the Aaa rating. Our model views New Zealand as a solid AAA/Aaa/AAA credit, and at this juncture we do not think Moody’s should downgrade”.
“We do note, however, that our model is more optimistic on the country than S&P and Fitch, which both cut New Zealand to AA back in September 2011. NZD made a new low for this move around 0.8215 on the Moody’s news, but has since recovered back to trade near 0.8300”.
Key Quotes:
“We would expect more jawboning about the strong currency, as Governor Wheeler has already made it clear that this is something that could impact RBNZ policy”.
“Meanwhile, Moody’s revealed that it discussed cutting New Zealand’s Aaa rating due to concerns about the current account deficit and vulnerability to external shocks. Moody’s official said that New Zealand has the largest negative net international investment position of the countries rated Aaa”.
“However, the official added that despite the discussion, it was decided to maintain the Aaa rating. Our model views New Zealand as a solid AAA/Aaa/AAA credit, and at this juncture we do not think Moody’s should downgrade”.
“We do note, however, that our model is more optimistic on the country than S&P and Fitch, which both cut New Zealand to AA back in September 2011. NZD made a new low for this move around 0.8215 on the Moody’s news, but has since recovered back to trade near 0.8300”.