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29 Jul 2015
Expect further easing by RBNZ, albeit at a slower pace – BBH
FXStreet (Edinburgh) - Analysts at BBH have assessed the recent speech by RBNZ’s Wheeler and its implications for the Kiwi dollar.
Key Quotes
“Governor Wheeler of the Reserve Bank of New Zealand pushed against expectations for dramatic rate cuts but did reiterate the need for a lower New Zealand dollar and scope for additional rate cuts”.
“The mini-tightening cycle was worth 100 bp and half of it has been unwound”.
“We look for the other half to be unwound in the coming months”.
“Kiwi initially rallied to $0.6740, a little more than three-quarters of a percent, but gave it all back in subsequent activity”.
Key Quotes
“Governor Wheeler of the Reserve Bank of New Zealand pushed against expectations for dramatic rate cuts but did reiterate the need for a lower New Zealand dollar and scope for additional rate cuts”.
“The mini-tightening cycle was worth 100 bp and half of it has been unwound”.
“We look for the other half to be unwound in the coming months”.
“Kiwi initially rallied to $0.6740, a little more than three-quarters of a percent, but gave it all back in subsequent activity”.