RBNZ: Surprise rates hold – Rabobank

In New Zealand the RBNZ under new Governor Orr produced a surprise for some by keeping rates on hold and suggesting that a cut as well as hike is possible next, according to analysts at Rabobank.

Key Quotes

"Rates in NZ and Australia are on hold for longer than the market thinks, and that the risks are of cuts and not hikes. Yes, the longer end of the curve can and will get whipped around by global trends, but the local dynamic just doesn’t argue for following the Fed.”