Flash: NZD/USD rate hike looks further in the distance - RBS

FXstreet.com (Barcelona) - According to Greg Gibbs, Currency Analyst at RBS, the RBNZ is likely to use its brief policy statement next Thursday (25 July) "to damp down rate hike expectations and again emphasize the exchange rate is too high."

Gibbs notes: "In light of the still high NZD, slowing outlook in Australia, downgrades to global growth from the IMF particularly in BRIC economies, some recent cooling in the housing market, evidence that talking macro-prudential controls may already be working, some cooling in commodity prices, and another low CPI print today, a rate hike looks further in the distance."