RBNZ’s Silk: Rate cut of either 25 bp or 50 bp will be on the table for Feb

Dhwani Mehta FXStreet

“Rate cut of either 25 bp or 50 bp will be on the table for Feb,” Reserve Bank of New Zealand (RBNZ) Assistant Governor Karen Silk said in an interview with Reuters on Thursday.

Additional quotes

Everything was on the table this week, but the committee reached a consensus on a 50 bp cut very quickly.

Did not feel the need to do more than 50 bp because there is still work to do on domestic inflation.

Expects tradeable inflation to pick up, so need non-tradeable inflation to come down.

Have to make sure core inflation is sustainably at target mid-point.

Market reaction

NZD/USD is less impressed by these comments, losing 0.06% on the day to trade at 0.5890 at press time.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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