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10 Jun 2014
RBNZ to hike the OCR by 25bp - Westpac
FXStreet (Bali) - Dominick Stephens, Chief Economist at Westpac, expects the RBNZ to hike rates by 25 bp on Thurday.
Key Quotes
"We expect the RBNZ to hike the OCR by 25 basis points, and to reiterate its plans to follow up with further OCR hikes this year and next."
"The RBNZ may sound a touch less adamant about the pace and extent of hikes than it was in the March MPS – but only a touch."
"Markets are expecting a more radical downgrade to the RBNZ’s planned hiking cycle, and may be quite surprised by this MPS."
"If we are correct, swap rates and the exchange rate will rise on the day."
Key Quotes
"We expect the RBNZ to hike the OCR by 25 basis points, and to reiterate its plans to follow up with further OCR hikes this year and next."
"The RBNZ may sound a touch less adamant about the pace and extent of hikes than it was in the March MPS – but only a touch."
"Markets are expecting a more radical downgrade to the RBNZ’s planned hiking cycle, and may be quite surprised by this MPS."
"If we are correct, swap rates and the exchange rate will rise on the day."