28 Jan 2016
NZD: RBNZ shifts to an explicit easing bias - TDS
FXStreet (Delhi) – Research Team at TDS, notes that the RBNZ shifted to an explicit easing bias as they predicted stating “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” but stopped short of signalling a cut as early as March.
Key Quotes
“The RBNZ took the liberty to mention its core inflation rate for the first time, most likely the Bank’s effort to signal that it will not be pressured to cut rates on “zero” headline inflation alone. That said, it did acknowledge the risks and most of them are point to further easing - Global growth, particularly China, dairy prices, net immigration and the housing market. TD’s thoughts on today’s RBNZ meeting can be accessed here.
Trade Balance for Dec was a narrower deficit of ~NZ$50m, vs near -NZ$800m in Nov. Exports firmer but ignored.
Just ahead of the RBNZ, Fonterra reduced its forecast Farmgate Milk Price for the 2015/16 season from $4.60 to $4.15 per kgMS. When combined with the earnings per share range of 45-55 cents, this means a total available for payout of $4.60-$4.70 per kgMS (the same payout as last year).”
Key Quotes
“The RBNZ took the liberty to mention its core inflation rate for the first time, most likely the Bank’s effort to signal that it will not be pressured to cut rates on “zero” headline inflation alone. That said, it did acknowledge the risks and most of them are point to further easing - Global growth, particularly China, dairy prices, net immigration and the housing market. TD’s thoughts on today’s RBNZ meeting can be accessed here.
Trade Balance for Dec was a narrower deficit of ~NZ$50m, vs near -NZ$800m in Nov. Exports firmer but ignored.
Just ahead of the RBNZ, Fonterra reduced its forecast Farmgate Milk Price for the 2015/16 season from $4.60 to $4.15 per kgMS. When combined with the earnings per share range of 45-55 cents, this means a total available for payout of $4.60-$4.70 per kgMS (the same payout as last year).”