RBNZ’s McDermott: Chances of a rate cut have increased
|Renters reports key comments delivered by the Reserve Bank of New Zealand John Assistant Governor McDermott in an interview on Thursday.
RBNZ was worried yield curve had priced in a rate hike.
Wanted markets to understand that a rate hike is currently off the table.
RBNZ needs to see growth pick up in Q3.
Would need to see core inflation back above 2% to hike.
The NZD/USD pair seems to have accelerated its decline on McDermott’s comments, now testing the 0.6650 level – fresh 2.5 years lows.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.