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15 Jan 2015
RBNZ to stay on hold in 2015 - DB
FXStreet (Bali) - Deutsche Bank NZ Chief Economist Darren Gibbs expects the RBNZ to leave its cash rate at 3.5% for the rest of the year.
Key Quotes
“Given the very low headline inflation readings that are now in prospect through this year, we think the market is correct to conclude that it very unlikely that the RBNZ would seek to raise the OCR in 2015.”
“We pencil in two further 25 bps hikes around the middle of next year. Timing and extent of ratre increases will depend critically on the behavior of the exchange rate and other factors impinging on the inflation outlook."
Key Quotes
“Given the very low headline inflation readings that are now in prospect through this year, we think the market is correct to conclude that it very unlikely that the RBNZ would seek to raise the OCR in 2015.”
“We pencil in two further 25 bps hikes around the middle of next year. Timing and extent of ratre increases will depend critically on the behavior of the exchange rate and other factors impinging on the inflation outlook."