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29 Jul 2015
RBNZ: Wheeler was a giveaway, rates on hold - ANZ
FXStreet (Guatemala) - Mark Smith, Senior Economist at ANZ explained that the RBNZ confirmed that there is still a reasonable hurdle for further OCR cuts, albeit that these are seen as “likely”.
Key Quotes:
"In particular, there was a telling comment that the large declines in interest rates currently predicted by “some local commentators” would only be consistent with the economy moving into recession.
The tone of the speech suggests strongly that this is not the RBNZ’s view at present – while demand and output growth may be running a little below trend, several factors are supporting economic growth: the easing in monetary conditions (lower NZD and interest rates), continued high levels of migration and labour force participation, ongoing growth in construction and continued strength in the services sector. We concur."
Key Quotes:
"In particular, there was a telling comment that the large declines in interest rates currently predicted by “some local commentators” would only be consistent with the economy moving into recession.
The tone of the speech suggests strongly that this is not the RBNZ’s view at present – while demand and output growth may be running a little below trend, several factors are supporting economic growth: the easing in monetary conditions (lower NZD and interest rates), continued high levels of migration and labour force participation, ongoing growth in construction and continued strength in the services sector. We concur."