The Reserve Bank of New Zealand left the cash rate unchanged at 2.25%
That was an 'as expected' decision.
Analyst responses are coming in now, outlooks etc.
ASB:
- Expect a cut in June to 2%
- Expect another cut in August
- ASB citing risks that inflation falls further
- See the RBNZ taking action (macroprudential policy) on the housing market if they cut further
Westpac:
- RBNZ guidance did not clearly signal the next cut would be in June
- The bank retains its easing bias
- The bank only slightly strengthened its NZD exchange rate warning
On the NZD response, WPAC says: NZD/USD jumped from 0.6845 to 0.6925 - a larger positive response than the 1/2c we had predicted. This is probably due to recent speculative short positioning being rebalanced. AUD/NZD fell from 1.1080 to 1.0955 and could run further, particularly given the AU CPI shock.
ANZ:
- Keeps the prospect of further easing in June alive
more to come