Comments from TD Securities head of Asia-Pacific research Annette Beacher on the Reserve Bank of New Zealand (bolding mine … but bold comment’s are Beacher’s

:-D

):

  • “This morning’s RBNZ speech may have been neutral but they could be the next central bank to cut. Inflation has tipped into deflation and New Zealand’s real yields are some of the highest in the developed world. We now expect consecutive 25bp cuts in March and April to 3% if the RBNZ is serious about keeping the NZD under pressure”
  • “Today’s speech buys the RBNZ time to adjust to the new ‘central bank’ world of 2015, where they say one thing and do another. We add the RBA to the growing list that includes the SNB, Bank of Canada and the MAS.”