FXStreet (Bali) – The Reserve Bank cut the Official Cash Rate by a further 25bps to 2.75% and the underlying tone remained dovish, notes the Economics Team at ANZ, led by Cameron Bagrie, Chief Economist, and Philip Borkin, Senior Economist.
Key Quotes
“Ultimately, the easing in monetary conditions to date is judged to be insufficient to get inflation back to its target over the medium term.”
“Our financial conditions measure says otherwise but we agree with the spirit of the RBNZ’s message, and the risk profile, given a volatile global scene points one way.”
“An easing bias was clear and downside risks discussed. Further NZD depreciation is believed to be appropriate.”
“That said, we don’t get the impression the RBNZ is necessarily in a hurry to cut again.”
“The 90-day bank bill projection falls only gradually and future moves are conditional on the emerging data flow.”
” As such, we are not convinced the RBNZ is set to pull the trigger straight away in October but certainly the OCR has not yet troughed.”
(Market News Provided by FXstreet)