Analysts at TD Securities suggest that the RBNZ is not giving investors any reason to hold NZD.
Key Quotes
“With the US having a higher (and rising) cash rate compared with the RBNZ, the ‘carry’ incentive doesn’t apply either. We are not dovish, therefore ‘hawkish’.”
“Rates: OIS is tracking a shade below 1.75% through to mid-2019. As the RBNZ is likely to repeat that the next move could be up or down, this remains appropriate. However, should prices, inflation expectations and wages growth continue to edger higher, the 1y OIS curve could be a lot steeper in 6-9 months’ time.”
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