RBNZ: a decline in the NZD is needed- UOB

Amalysts at the RBNZ explained that the RBNZ, in its out-of-schedule economic update , urged that a decline in the NZD is needed.

Key Quotes:

"A decline in the NZD is needed.

to help drive inflation higher and support the export sector, and signaled that further policy easing is likely to achieve this."

"Back in June, the RBNZ had said that further easing “may” be required. But today’s statement clearly strengthens the Bank’s easing bias."

In our view, the implication of today’s update is to confirm that the RBNZ will very likely be moving the OCR lower at its 11 August meeting. Further easing beyond that will be likely, especially if the exchange rate remains elevated."