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RBNZ: flaggs prospects of further cuts - ANZ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Analysts at ANZ noted that the RBNZ cut its official cash rate by 25bps to 2.25%.

    Key Quotes:

    "The RBNZ also flagged the prospect of further cuts, with a cumulative 50bps reduction in the bill track by September 2017. Two factors were key in the decision: a more fragile looking global scene (though reasonable growth is still expected); and the recent decline in inflation expectations.

    The recent shift down in inflation expectations does appear to have spooked the RBNZ somewhat. Despite acknowledging that long-term measures have remained stable around 2%, it noted that “there has been a material decline in a range of measures”. We expect two more rate cuts before year end."
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