10 Jul 2015
RBNZ: Further policy action is warranted – ANZ
FXStreet (Barcelona) - Cameron Bagrie, Chief Economist at ANZ, views that the low inflation and sub-trend growth in New Zealand means additional OCR cuts by the RBNZ are imminent.
Key Quotes
“The Monthly Inflation Gauge posted a 0.1% increase in June, following falls in April and May.”
“Prices in the housing group rose 0.2%, with our Underlying Ex-housing Gauge flat for the month (and also flat in the three months to June).”
“On a three month basis, our Monthly Inflation Gauge is up just 0.1% and points to a low Q2 non-tradable print in the official CPI figures next week.“
“Last year’s OCR hikes are now being reversed. With inflation low, the economy growing at a below-trend pace, the NZD only now catching up to commodity price falls, and global risks evident, further monetary policy action is warranted. We see the RBNZ eventually returning the OCR to 2.5%.”
Key Quotes
“The Monthly Inflation Gauge posted a 0.1% increase in June, following falls in April and May.”
“Prices in the housing group rose 0.2%, with our Underlying Ex-housing Gauge flat for the month (and also flat in the three months to June).”
“On a three month basis, our Monthly Inflation Gauge is up just 0.1% and points to a low Q2 non-tradable print in the official CPI figures next week.“
“Last year’s OCR hikes are now being reversed. With inflation low, the economy growing at a below-trend pace, the NZD only now catching up to commodity price falls, and global risks evident, further monetary policy action is warranted. We see the RBNZ eventually returning the OCR to 2.5%.”