NZD/USD: Too High, Expecting One More Cut - UOB
Analysts at UOB Group noted that the RBNZ announced the outcome of its latest policy review.
Key Quotes:
"As
was widely expected, follow a surprise rate cut at the March review the
Bank decided to keep its OCR at 2.25% at this review, but has
maintained an easing bias."
"The Bank noted that “Further policy
easing may be required to ensure that future average inflation settles
near the middle of the target range."
"We will continue to watch
closely the emerging flow of economic data”. We are still expecting one
more rate cut by the central bank this year, on the back of persistently
low inflation, the high NZD and low dairy prices."
