The Kiwis are once again making Australian economic management look hopeless today as the Kiwi dollar is poleaxed lower:
And yes, it is seriously outpacing the battler now:
Parity dreams are over. The reason? Like Australia, NZ is in a terms of trade collapse. Unlike Australia, its central bank is ready for it. From Barclays via Forexlive:
Looking for a rate cut in:
- July,
- September,
- and then again in December
Previously they had June and July only.
Citing continued low inflation and weak growth outlook
Auckland house prices have remained a headache owing to the vested interests driving them but the RBNZ can cut like this because it’s got tough macroprudential measures in place that are about to get much tougher for investors.
Meanwhile, we have a dollar that is falling far too slowly and a massive housing bubble. Yeh!
