RBNZ to cut rates – TDS

FXStreet (Barcelona) - Richard Kelly, Head of Global Strategy, TD Securities, anticipates RBNZ to cut rates, and if not, reinforce dovish sentiments in the market.

Key Quotes

“Inflation expectations have fallen, and macroprudential measures are on the radar to manage the risks of lower rates.”

“NZD may be weakening versus the USD, but is still inching closer to parity versus AUD which means that when everyone else is easing, the RBNZ is losing ground by standing still.”

“Even if they don’t cut this week, the message will likely reinforce market moves in that direction.”