Research Team at TDS, notes that the RBNZ cut the Official Cash Rate
(OCR) by -25bp to 2.5%, revisiting post GFC-lows, citing slowing growth,
lower terms of trade and low inflation.
Key Quotes
“Was expected by TD and 15/18 analysts. The NZD jumped as the Bank left a weak conditional easing bias of “We expect to achieve [2% inflation] at current interest rate settings, although the Bank will reduce rates if circumstances warrant”; and (2) the bank bill profile (i.e. forward guidance) was unchanged from three months ago despite a much higher exchange rate assumption.”
“Also released, REINZ home sales for Nov saw hot-spot Auckland’s sales volumes down -11.5%/mth, the lowest sales volumes seen since 2011. Restrictions are working.”
Key Quotes
“Was expected by TD and 15/18 analysts. The NZD jumped as the Bank left a weak conditional easing bias of “We expect to achieve [2% inflation] at current interest rate settings, although the Bank will reduce rates if circumstances warrant”; and (2) the bank bill profile (i.e. forward guidance) was unchanged from three months ago despite a much higher exchange rate assumption.”
“Also released, REINZ home sales for Nov saw hot-spot Auckland’s sales volumes down -11.5%/mth, the lowest sales volumes seen since 2011. Restrictions are working.”
