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24 Feb 2015
NZD dips as RBNZ lowers inflation view – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments on today’s RBNZ’s action of lowering its 2-year and 1-year inflation estimate to 1.80% and 1.11%, which sent NZD/USD lower by over 60 pips.
Key Quotes
“NZD/USD is the biggest mover among USD majors, falling over 60pips below $0.7470 after RBNZ lowered its 2-yr inflation estimate by 36bps to 1.80% and 1-yr target by 48bps to 1.11%.”
“RBNZ also noted hourly earnings growth expectations slid from 2.47% to 2.27% in the 1-year timeframe but remained around 2.6% over 2-year term.”
“Earlier, New Zealand Institute of Economic Research (NZIER) noted that RBNZ will not be able to justify any more policy moves this year and will have to use macroprudential measures to deal with rising property prices in in Auckland. Note that RBNZ Gov Wheeler will testify as part of RBNZ Annual Report before the Parliament tomorrow.”
Key Quotes
“NZD/USD is the biggest mover among USD majors, falling over 60pips below $0.7470 after RBNZ lowered its 2-yr inflation estimate by 36bps to 1.80% and 1-yr target by 48bps to 1.11%.”
“RBNZ also noted hourly earnings growth expectations slid from 2.47% to 2.27% in the 1-year timeframe but remained around 2.6% over 2-year term.”
“Earlier, New Zealand Institute of Economic Research (NZIER) noted that RBNZ will not be able to justify any more policy moves this year and will have to use macroprudential measures to deal with rising property prices in in Auckland. Note that RBNZ Gov Wheeler will testify as part of RBNZ Annual Report before the Parliament tomorrow.”