The Reserve Bank of New Zealand cut the official cash rate by 25bp to 3.25% to combat low inflation and the strength of the New Zealand dollar which in an environment of plunging commodity prices had severely dented overseas earnings. Wage inflation and inflation expectations were also viewed as being subdued.
Nonetheless, the economy remains in decent shape with growth of 3% likely this year while macroprudential tools are being used to try and cool the housing market. In fact these have been intensified in hot spots such as Auckland – the use of restrictions on mortgages over certain loan to values and income multiples. Moreover, looser monetary policy, high net immigration and ongoing strength in construction should support activity.
Consequently, while the RBNZ suggested that “further easing may be appropriate”, we don’t expect it in this cycle. [ING]
(nonsolotrading.com)
LVXbeats
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So this means the trade is no longer valid?
TheAnonymousBanker
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This model no, price below C point
TheAnonymousBanker
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look weekly chart..... more interesting......
LVXbeats
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Yup. . . I see overbought from Stoch and what looks like a strong support?
LVXbeats
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Oversold* rather
oleg.golubovich
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Ouch.. what has caused that harmful spike?..
SpLiFT
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RBNZ has cut the interest rate from 3.5% to 3.25%.
Nonetheless, the economy remains in decent shape with growth of 3% likely this year while macroprudential tools are being used to try and cool the housing market. In fact these have been intensified in hot spots such as Auckland – the use of restrictions on mortgages over certain loan to values and income multiples. Moreover, looser monetary policy, high net immigration and ongoing strength in construction should support activity.
Consequently, while the RBNZ suggested that “further easing may be appropriate”, we don’t expect it in this cycle. [ING]
(nonsolotrading.com)