RBNZ: NZD strength means any rate hike thoughts far-fetched - ING

If anything, the strength of the currency plays an even more important role in the decisions of the RBNZ than the RBA, and recent strength in the NZD means that any imminent rate hike views are really very far-fetched even if the ultimate direction later this year is upward, explains the research team at ING.

Key Quotes

“Recent data shows the New Zealand manufacturing sector at its weakest in five years and service sector PMIs have also eased back. We have a rate hike forecast for 2Q18, but this is beginning to look difficult to sustain, and we are likely to push this back and probably remove the second hike pencilled in for 4Q18.”