FXStreet (Edinburgh) – Analyst at Danske Bank Kristoffer Lomholt reviewed yesterday’s decision by the RBNZ to cut rates by 25 bp.
Key Quotes
“Yesterday the Reserve Bank of New Zealand cut the cash rate by 25bp for the second time in six weeks”.
“While Governor Wheeler stated that ‘further easing seems likely’, he noteworthy omitted prior comments on the NZD being fundamentally overvalued”.
“On the back of the recent weak ‘kiwi’ economic data pulse more than a full 25bp cut had been priced in financial markets”.
“The NZD has strengthened on the announcement – a move likely amplified by the historically stretched short speculative NZD-positioning”.
(Market News Provided by FXstreet)