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12 Mar 2015
RBNZ kept its neutral policy stance - Nomura
FXStreet (Bali) - Charles St-Arnaud, Economist at Nomura, explains that overall, the RBNZ kept its neutral policy stance today.
Key Quotes
"Overall, the RBNZ kept its policy rate on hold and reiterated its neutral policy stance. Moreover, during the press conference, when asked whether the RBNZ would consider cutting rates as many other central banks have done, Governor Wheeler went into great detail explaining that the situation in NZ differs from countries where central banks have cut rates, and suggested that the RBNZ has not seriously discussed cutting rates at the meeting."
"It appears that as long as the domestic economy does not show clear signs of weakness and the currency continues to the drift lower, the RBNZ will not have any incentive to cut rates. We continue to believe the RBNZ will keep its policy rate unchanged until early 2016."
"Some investors had expected the announcement of new macro-prudential measure to slow the housing market, especially in Auckland. However, Governor Wheeler's comments on the matter suggest that we are not near an announcement, as many details still need to be worked out."
Key Quotes
"Overall, the RBNZ kept its policy rate on hold and reiterated its neutral policy stance. Moreover, during the press conference, when asked whether the RBNZ would consider cutting rates as many other central banks have done, Governor Wheeler went into great detail explaining that the situation in NZ differs from countries where central banks have cut rates, and suggested that the RBNZ has not seriously discussed cutting rates at the meeting."
"It appears that as long as the domestic economy does not show clear signs of weakness and the currency continues to the drift lower, the RBNZ will not have any incentive to cut rates. We continue to believe the RBNZ will keep its policy rate unchanged until early 2016."
"Some investors had expected the announcement of new macro-prudential measure to slow the housing market, especially in Auckland. However, Governor Wheeler's comments on the matter suggest that we are not near an announcement, as many details still need to be worked out."