Reserve Bank of New Zealand Orr:
- confident inflation back in its target band
- can commence re-normalising rates
- we considered a range of moves and consensus was for 25bps
- projections are NZ is headed towards a period of low and stable inflation
- broad range of indicators are consistently soft
-
Reasonable first step for monetary easing, in strong position to move
calmly - Remarkably pleased
with how economy has panned out with our forecasts - High frequency data
show economy weakening - Its a good news
story of pricing intentions changing - Still have
restrictive financial conditions
Earlier, read from the bottom up for the chronology:
- Market pricing is for an Reserve Bank of New Zealand rate cut at its next meeting too
- ICYMI – RBNZ cut its cash rate by 25bp, market consensus was for on hold
- NZD/USD marked lower after the Reserve Bank of New Zealand cut its cash rate
- Reserve Bank of New Zealand announce cash rate cut to 5.25%
This article was written by Eamonn Sheridan at www.forexlive.com. Source