NZ: Larger than expected July trade gap - BBH

Research Team at BBH, notes that overnight, New Zealand reported a larger than expected July trade gap of –NZD433 mln. 

Key Quotes

“Both exports and imports came in weaker than expected.  Earlier this week, RBNZ Governor Wheeler said that while easing is still likely, he saw no need for rapid rate cuts.  With two policy meetings left this year, this suggests no move on September 22 followed by a 25 bp rate cut on November 10.  While the RBNZ doesn’t target the currency, Wheeler cannot be happy with ongoing Kiwi strength.”