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11 May 2015
RBNZ to cut by 25bps in June, another cut in July - ANZ
FXStreet (Bali) - ANZ expects the RBNZ to cut by 25bps in June and follow up with another cut in July.
Key Quotes
"Falls in the housing, miscellaneous goods, and recreation & culture groups contributed to a 0.2% fall in the April Monthly Inflation Gauge. Prices were flat excluding the housing group."
"Prices in the Gauge rose 1.0% in the three months to April. Over this time, pricing pressure remained housing and government charge-centric, with prices outside of these areas up just 0.1% in the three months to April."
"We’ve seen enough across our four prongs (high NZD, dairy income squeeze, inevitability of a prudential response towards housing and continued low core inflation reads) to call the OCR lower."
"We expect the RBNZ to cut by 25bps in June and follow up with another cut in July."
"Monetary policy is more than merely monitoring demand and wage and price setting outcomes; the RBNZ must manage the risk profile around them. Cutting the OCR is a low delta option to manage emerging risks."
Key Quotes
"Falls in the housing, miscellaneous goods, and recreation & culture groups contributed to a 0.2% fall in the April Monthly Inflation Gauge. Prices were flat excluding the housing group."
"Prices in the Gauge rose 1.0% in the three months to April. Over this time, pricing pressure remained housing and government charge-centric, with prices outside of these areas up just 0.1% in the three months to April."
"We’ve seen enough across our four prongs (high NZD, dairy income squeeze, inevitability of a prudential response towards housing and continued low core inflation reads) to call the OCR lower."
"We expect the RBNZ to cut by 25bps in June and follow up with another cut in July."
"Monetary policy is more than merely monitoring demand and wage and price setting outcomes; the RBNZ must manage the risk profile around them. Cutting the OCR is a low delta option to manage emerging risks."