NZD: RBNZ keep rates unchanged – Nomura

By FXStreet FXStreet (Delhi) – Charles St-Arnaud, Research Analyst at Nomura, notes that the RBNZ kept rates unchanged while shifting to a dovish policy stance, while it signalled no imminent rate cut.

Key Quotes

“The RBNZ kept its policy rate unchanged at 2.50%, as expected. However, the statement was more dovish than expected. The RBNZ stated that “headline inflation is expected to increase over 2016, but take longer to reach the target range than previously expected”. It also added that “some further policy easing may be required over the coming year to ensure that future average inflation settles near the middle of the target range, shifting to a dovish bias”.

In its economic assessment, the RBNZ continues to say that “the domestic economy softened during the first half of 2015 driven by the lower terms of trade”, but added that “growth is expected to increase in 2016 as a result of continued strong net immigration, tourism, a solid pipeline of construction activity, and the lift in business and consumer confidence”.

On the global economy, the central bank increased its level of concern, saying “uncertainty about the strength of the global economy has increased due to weaker growth in the developing world and concerns about …read more

Source:: FX Street