RBNZ: Further policy easing will be required - RBS

Research Team at RBS, notes that the Reserve Bank of New Zealand cut its benchmark rate to 2% in order to combat low inflation, as widely expected.

Key Quotes

“RBNZ Governor Wheeler said that the central bank’s current projections and assumptions indicate that further policy easing will be required to ensure that future inflation settles near the middle of the target range. However, the new forecast for 90day bill rate, suggests the RBNZ expects only one further cut – a signal that may be read as hawkish by the market.(Bloomberg)”