NZ cenbank holds rates at 1.75 percent, says lower NZD would help

NZ cenbank holds rates at 1.75 percent, says lower NZD would help”

New Zealand's National Party emerged from the General Election with the largest number of seats at 58, followed close behind by Labour at 45, New Zealand First with 9, Greens with 7 and ACT at 1 - resulting in no clear majority and thus a hung parliament.

We think that this morning's RBNZ OCR review should pass without much market reaction, with the Bank's key policy message likely remaining unchanged, suggesting that "monetary policy will remain accommodative for a considerable period".

New Zealand's central bank held rates at a record low of 1.75 percent on Thursday as expected, saying that a lower New Zealand dollar would be helpful.

The New Zealand dollar edged lower to 72.10 USA cents after the statement from 72.20 United States cents just before.

We continue to look for a lower NZD over the coming year, as tight financial conditions, weaker growth, a housing market that has peaked and a policy rate more likely to go down than up in the next year all weigh on the Kiwi.

A appreciation of the New Zealand dollar in trade-weighted terms in 2017 has generated concern at the RBNZ over its potential to crimp exports and push down domestic prices, though the uncertainty surrounding the election has pulled the kiwi down a tad in recent weeks.

Mr Spencer said the economy grew in line with expectations in the second quarter, following relative weakness in previous quarters.

"Growth is projected to maintain its current pace going forward, supported by accommodative monetary policy, population growth, elevated terms of trade, and fiscal stimulus", the bank said in its statement.

It also again noted that house prices had cooled, although there remains a risk of resurgence in prices given population growth and resource constraints in the construction sector, it said.

"USD strength was a feature overnight against all and sundry excluding the NZD", said Cameron Bagrie, chief economist at ANZ Bank New Zealand, in a note. Indeed, Winston Peters, leader of the New Zealand First Party and kingmaker in this equation has since stated that no decisions will be made regarding coalition partners until the 7 of October, when the final voter tally is counted. He will remain in the position while the new government appoints a permanent governor.

He also said the economy would benefit from a lower exchange rate.

Like this



28 September 2017
Interpol, Risking Politicization, Admits PA as Member
Opponents say recognizing Palestine in global organizations undermines long-stalled negotiations with Israel for full statehood. Interpol, which is based in Lyon, France, eases the exchange of information between police forces.

28 September 2017
Jabil Inc. Setting The Table For Earnings
The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink . The firm owned 159,618 shares of the technology company's stock after purchasing an additional 30,138 shares during the period.

28 September 2017
Jai Lava Kusa Grosses Rs 100 Crores
Although the movie received mixed response from critics, that could not dissuade movie-goers from rushing to the theatres. In the film, NTR plays a triple role, which has garnered appreciation, especially his negative-shaded character, Jai.

28 September 2017
Girl, 16, charged with attempted murder after stabbing
The stabbing is believed to have happened in the school office while children were in their classrooms ready for lessons to begin. A spokesman for East Midlands Ambulance Service said: "We sent a paramedic on a vehicle and a crewed ambulance".

28 September 2017
BTS to launch their own music show 'BTS Countdown'
And before that, the EP tops the iTunes charts in several countries, while the group became the first K-Pop act to enter Spotify's Global Top 50 chart.

28 September 2017
UN Urges EU to Continue with the Resettlement of Refugees
The commission said that it had set aside 500 million euros ($590m) to support the resettlement effort. Member states will be free to participate in the scheme on a voluntary basis.

28 September 2017
Betting On IHS Markit Ltd. (NASDAQ:INFO) ?
Zacks Investment Research upgraded IHS Markit from a "sell" rating to a "hold" rating in a research note on Tuesday, August 29th. Mutual of America Capital Management LLC grew its stake in shares of IHS Markit by 20.0% during the 1st quarter.

28 September 2017
What the Insider Data Suggests About The Walt Disney Company (DIS)
Shares of Kellogg Company (NYSE:K) traded down -0.95% in the last session while performance was up 63.42% in the last five days. The entertainment giant posted $1.58 Earnings per share for the period, beating analysts' average forecasts of $1.53 by $0.05.

28 September 2017
Bruce Maxwell's Impact on Major League Baseball
Entering Saturday the 26-year-old Maxwell has played in 71 games this season, batting.244 with three homers and 21 RBI. This act caused the Athletics to release a statement, which said "The Oakland A's pride ourselves on being inclusive.

28 September 2017
San Francisco Sues Equifax Over Massive Data Breach
Meanwhile, the city of San Francisco has filed a lawsuit against Equifax on behalf of the state of California. It seeks tens of millions of dollars in civil penalties as well as restitution for some consumers.