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.
"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."