RBNZ goes on the rate cut mode with 25bp cut in OCR – Deutsche Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Phil O'Donaghoe, Economist at Deutsche Bank, notes that the RBNZ has announced a 25bp cash rate reduction to the OCR to 2.5%.

    Key Quotes

    “The RBNZ's central projection is that this easing cycle is now over, although the Bank does note that "the Bank will reduce rates if circumstances warrant." Our central view remains that 2.5% will mark the low-point for the OCR this cycle, not least due to the RBNZ's reluctance to move the OCR lower.”

    “However, we certainly do not rule out the possibility of further easing in H1 next year, with domestic drought conditions, unexpected exchange rate strength, further commodity price weakness, global financial volatility, disappointing global growth outcomes and geopolitical risks all capable of driving such an outcome.”
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