19 May 2015
NZ PPI Q1 keep falling, higher odds for lower RBNZ rates?
FXStreet (Bali) - New Zealand's Q1 PPI output came in at -0.9% QoQ vs -0.1% prior, while input was -1.1% QoQ vs -0.4% prior, with the yearly reading at -2.5% for output and -4% for input.
The data has knocked down the Kiwi over 25 pips against the US Dollar, as it provides further evidence of the declining inflationary pressures in the country, which coupled with new macroprudential measures announced recently, clears the path for a potential, if only brief, easing campaign by the RBNZ. What this data is telling us is that from a consumer perspective, inflation remains on a descending trend, with odds of an RBNZ 25bp cut next June 11 around 50% at present.
The data has knocked down the Kiwi over 25 pips against the US Dollar, as it provides further evidence of the declining inflationary pressures in the country, which coupled with new macroprudential measures announced recently, clears the path for a potential, if only brief, easing campaign by the RBNZ. What this data is telling us is that from a consumer perspective, inflation remains on a descending trend, with odds of an RBNZ 25bp cut next June 11 around 50% at present.