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22 Feb 2016
Bearish on NZ swap rates - Westpac
Imre Speizer, analyst at Westpac explained that NZ swap rates have scope to fall further, despite the impressive 40bp decline in the 2yr since late Dec.
Key Quotes:
"The sharp fall in inflation expectations last week emboldened markets to price in a non-trivial probability of two RBNZ rate cuts this year.
However there's room to price in more such the 2yr should eventually fall to 2.30% if the OCR falls to 2.0%."
Key Quotes:
"The sharp fall in inflation expectations last week emboldened markets to price in a non-trivial probability of two RBNZ rate cuts this year.
However there's room to price in more such the 2yr should eventually fall to 2.30% if the OCR falls to 2.0%."