Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, notes that the RBNZ has surprised the market by leaving the cash rate on hold at 1%. Key Quotes “16 of 21 analysts were expecting a cut to 0.75% and OIS was ~75% priced for this outcome. We were one of the outliers.” “Rates were kept on hold because economic developments since the August statement did not warrant a change.” “The Bank indicated it is prepared to ease monetary policy further noting near term risks were tilted to the downside.” “On the forecasts, the OCR trough remained at 0.9%, GDP is expected to remain above 2%, the TWI was nudged lower and CPI lifted but a break above 2% not to be sustained.” “We sense there is no urgency from the Bank to cut the cash rate again anytime soon. We now pencil in the next RBNZ cut for May’20 and a placeholder cut for Q3/Q4’20.” “In the near term we expect NZ rates to underperform and the NZD to outperform. We have no curve positions on, but our models are telling us steepeners are the way to go.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next TRON price analysis: TRX/USD mired in a range under $0.02 FX Street 3 years Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, notes that the RBNZ has surprised the market by leaving the cash rate on hold at 1%. Key Quotes "16 of 21 analysts were expecting a cut to 0.75% and OIS was ~75% priced for this outcome. We were one of the outliers." "Rates were kept on hold because economic developments since the August statement did not warrant a change." "The Bank indicated it is prepared to ease monetary policy further noting near term risks were tilted to the downside." "On the forecasts, the OCR trough remained at 0.9%, GDP is… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
