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9 Sep 2015
RBNZ will cut...this year - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that they see strong risk that the RBNZ will cut rates further this year.
Key Quotes:
"When it cut rates on July 23 it referred to the sharp fall in the world price for dairy and recent developments in China and Europe leading to “heightened uncertainty and increased financial market volatility”. Since then the market has been forced to face up to the full force of a slowdown in Chinese growth and the loss of emerging market economies in general.
Looking ahead, the dairy industry and the RBNZ may have something else to fear in the shape of the fallout from El Niño and the potential for drought in the coming months, which will only add to the downside risks to growth in the country.
Key Quotes:
"When it cut rates on July 23 it referred to the sharp fall in the world price for dairy and recent developments in China and Europe leading to “heightened uncertainty and increased financial market volatility”. Since then the market has been forced to face up to the full force of a slowdown in Chinese growth and the loss of emerging market economies in general.
Looking ahead, the dairy industry and the RBNZ may have something else to fear in the shape of the fallout from El Niño and the potential for drought in the coming months, which will only add to the downside risks to growth in the country.