FXStreet (Delhi) – Kymberly Martin, Senior Market Strategist at BNZ, suggests that Wednesday’s release of the RBNZ’s Financial Stability Report, will be this week’s highlight.
Key Quotes
“Dairy and housing sector risks will likely be well discussed. Macro-prudential tools remain the RBNZ’s preferred method for dealing with the latter. However, any concerns expressed here will simply add weight to our view of the RBNZ as a ‘reluctant cutter’. It does not wish to add fuel to the increasingly-nationwide housing fire, by aggressively cutting rates. Our central case remains one further cut at the Dec meeting. This takes the OCR to a cyclical trough of 2.50%. We see the OCR unchanged throughout 2016.”
(Market News Provided by FXstreet)