Kiwi May Reach 0.58 in a Year, RBNZ Seen Cutting Rate: Redward
Source: BFW (Bloomberg First Word)
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Peter Redward (Redward Associates Ltd)
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UUID: 7947283
(Bloomberg) -- It’s time to re-enter short exposure to NZD/USD, as further monetary accommodation will be required this year, Peter Redward, principal at Redward Associates, says in an interview.
Alert: HALISTER1- RBNZ could cut interest rate to 1.75%: Redward
- There is scant evidence that rising house prices are a threat to the inflation target
- Peak dis-inflationary impulse from falling energy prices is “now behind us” but inflation remains well below target for a 7th year (excluding GST effects)
- RBNZ may further tighten macro-prudential measures to ensure financial stability
- Dairy farmers will post more losses in 2016/17 while credit expansion and falling collateral values are now showing up in rising impairments
- NZD/USD up 0.1% to 0.6886
- NOTE: RBNZ next meet on June 9 to set monetary policy; cash rate left at 2.25% last week
- NOTE: Redward also suggests receiving kiwi 5y5y interest- rate swaps, now at 3.4714%
Source: BFW (Bloomberg First Word)
People
Peter Redward (Redward Associates Ltd)
To de-activate this alert, click here
UUID: 7947283