A client note from HSBC economics on the outlook for Reserve Bank of New Zealand monetary policy in 2016

  • Forecast a 25bp cut in Q2
  • And also in Q3

Revising their earlier call for just one cat in 2016

They cite persistently low inflation - saying it is a 'test' of the central bank's 'inflation targeting regime'

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(Note: the RBNZ have an inflation target of 1 - 3%, and as yesterday's data showed, they ain't even close)