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24 Feb 2015
RBNZ might signal a clear easing bias in March – TDS
FXStreet (Barcelona) - The TD Securities Team views that with annual inflation rates expected to remain well below the 1.1% RBNZ target for 2015, RBNZ might signal a clear easing bias next month.
Key Quotes
“The RBNZ’s Survey of expectations for the March quarter was released today showing another decline in 2yr inflation expectations, from 2.06% in Q4 2014 to 1.80%, the lowest level since 1999.”
“Short-term inflation expectations are quite subdued too, +0.04% in Q1 and 0.32% in Q2. These expected quarterly increases imply annual inflation rates of 0.46% and 0.53% in Q1 and Q2, well below the 1.1% the RBNZ has forecast for 2015.”
“While the market is reluctant to price in a cut at next month’s RBNZ meeting, today’s data opens up the potential for the Bank to signal a clear easing bias next month.”
“There was little change in GDP expectations, Q4 at 0.8% and Q1 at 0.7% while the NZD is not expected to move significantly to remain around US$0.73 by June and US$0.72 by Dec 2015.”
Key Quotes
“The RBNZ’s Survey of expectations for the March quarter was released today showing another decline in 2yr inflation expectations, from 2.06% in Q4 2014 to 1.80%, the lowest level since 1999.”
“Short-term inflation expectations are quite subdued too, +0.04% in Q1 and 0.32% in Q2. These expected quarterly increases imply annual inflation rates of 0.46% and 0.53% in Q1 and Q2, well below the 1.1% the RBNZ has forecast for 2015.”
“While the market is reluctant to price in a cut at next month’s RBNZ meeting, today’s data opens up the potential for the Bank to signal a clear easing bias next month.”
“There was little change in GDP expectations, Q4 at 0.8% and Q1 at 0.7% while the NZD is not expected to move significantly to remain around US$0.73 by June and US$0.72 by Dec 2015.”