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23 Apr 2015
RBNZ: Willing to put up with low underlying inflation - Capital Economics
FXStreet (Bali) - Paul Dales, Chief Economist Australia/New Zealand at Capital Economics, expects the RBNZ to remain neutral on April 30, although he still believes that a cut in the cash rate is coming later this year.
Key Quotes
"The decent near-term outlook for GDP growth and the robust housing market will offset any concerns about low underlying inflation and prompt the Reserve Bank of New Zealand (RBNZ)to leave interest rates on hold at 3.5% at the policy meeting scheduled for Thursday 30th April. We still believe that a slowdown in economic growth will force the RBNZ to cut rates this year, albeit a little later than we previously thought."
Key Quotes
"The decent near-term outlook for GDP growth and the robust housing market will offset any concerns about low underlying inflation and prompt the Reserve Bank of New Zealand (RBNZ)to leave interest rates on hold at 3.5% at the policy meeting scheduled for Thursday 30th April. We still believe that a slowdown in economic growth will force the RBNZ to cut rates this year, albeit a little later than we previously thought."