RBNZ expectations for June meeting – ANZ

By FXStreet Analysts at ANZ explained that they now expect the RBNZ to maintain the OCR at 2.25% in June.

Key Quotes:

“Further RBNZ easing is still more likely than not, however. The global situation remains vulnerable and the actions of other central banks are keeping the NZD stronger than “desirable”. In a world where currencies are diverging from fundamentals, interest rates must converge, and this is a force we suspect will drag the RBNZ back to the easing table at some stage.

We expect more aggressive competition for deposits over 2H 2016, which will place upward pressure on retail deposit rates.

Our forecast change is therefore one of timing. It is again a close call, but we have pushed our June cut into August (with odds at around 60%). Given global risks we still see the OCR getting to a low of 1.75%, but now not until 2017.”
For more information, read our latest forex news. …read more

Source:: FX Street