RBNZ: Kiwi's push to new highs is a function of Governor Wheeler's guidance - BBH

Research Team at BBH, notes that the Kiwi is up 1.5% following the RBNZ's decision to leave rates on hold and signal little urgency to cut again in the near-term.

Key Quotes

“In recent days, the odds of a New Zealand rate cut had fallen, and like other major central banks, the RBNZ appears to want to keep its powder dry.  The Kiwi's push to new highs since last June was also a function of Governor Wheeler's guidance.  He suggested that the output gap has closed and that prices were stabilizing, but could accelerate higher.  He explicitly indicated that there was no need for additional stimulus at this juncture.  Wheeler also noted the resurgence in house prices.”