NZD: RBNZ re-joins policy divergence - BNPP

FXStreet (Delhi) – Economists at BNP Paribas, notes that the RBNZ left rates unchanged as expected but shifted back to an easing bias from a more neutral stance communicated after the December rate cut.

Key Quotes

“Whereas in December the RBNZ said that it expected to reach its inflation target with the current policy settings, it has now signalled that “some further policy easing may be required over the coming year”. Markets were pricing in a full rate hike by Q3 2016 and we expect NZD to remain under pressure as those expectations are brought forward.”