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12 Sep 2013
Flash: RBNZ not particularly hawkish for interest rates - ANZ
FXstreet.com (Barcelona) - According to Economists at ANZ, after the hawkish RBNZ monetary policy statement, the market will mainly be focused on the RBNZ's 90-day bill track.
Key Quotes
"RBNZ's 90-day bill track is 25bps higher in June 2014, 37bps higher in Sep 2014, and 42-48bps higher through the remainder of 2014 and 2015."
"That may sound aggressive, but importantly, the new projections are not as high as what's already priced into the market - in fact they are about 30bps shy of market pricing through most of the projection period, so we do not regard this as particularly hawkish for interest rates."
"In fact, the projections are consistent with a 2yr swap at 3.25% and a 1yr/1yr at around 3.75%, which is well below where the market is now."
Key Quotes
"RBNZ's 90-day bill track is 25bps higher in June 2014, 37bps higher in Sep 2014, and 42-48bps higher through the remainder of 2014 and 2015."
"That may sound aggressive, but importantly, the new projections are not as high as what's already priced into the market - in fact they are about 30bps shy of market pricing through most of the projection period, so we do not regard this as particularly hawkish for interest rates."
"In fact, the projections are consistent with a 2yr swap at 3.25% and a 1yr/1yr at around 3.75%, which is well below where the market is now."