Free Trial

VIEW: ANZ write "the Reserve Bank last week....>

- Bonds & Currency News | Market News" >
RBNZ: VIEW: ANZ write "the Reserve Bank last week sounded a slightly more
cautious tone about the future path for the economy and inflation than in their
November projections, but only modestly so. The implied first OCR hike was
pushed out to mid-2021 from late-2020. The market was anticipating a more
significant change in tone, perhaps influenced by dovish surprises from the US
Federal Reserve and the Reserve Bank of Australia. This meant the NZD and
interest rates spiked on the day, even though the surprise relative to most
economists' expectations (including ours) was small. Our expectation for OCR
cuts kicking off in November is built on a forecast that GDP growth will fail to
accelerate over this year as the RBNZ is projecting, leading to the RBNZ in time
concluding that more monetary stimulus is required. There is plenty of data
between now and then to make or break our case."
- Bonds & Currency News | Market News" >
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.