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21 Mar 2013
Forex Flash: NZ GDP leads to 35% chance RBNZ hike by year end - BNZ
FXstreet.com (Barcelona) - The NZD ends Thursday as the best performing currency on the great NZ GDP read 24 hours ago and solid NZD/EUR demand, resulting on the rate being taken above 0.8300.
According to Mike Jones, Currency Strategist at Bank of New Zealand: "NZ’s GDP soared 1.5% in Q4 2012, taking the annual increase to a very respectable 3.0%. The expansion was bigger than anyone expected, including the RBNZ, which, like us, had picked a 0.8% lift. There was nothing weird in the Q4 GDP, rather, growth surprised across a significant number of industries."
Mike adds that in isolation, "the GDP data substantially reduce the RBNZ’s ability to wait until mid-2014 to raise interest rates and, indeed, the market now prices a roughly 35% chance of an OCR hike by year end."
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According to Mike Jones, Currency Strategist at Bank of New Zealand: "NZ’s GDP soared 1.5% in Q4 2012, taking the annual increase to a very respectable 3.0%. The expansion was bigger than anyone expected, including the RBNZ, which, like us, had picked a 0.8% lift. There was nothing weird in the Q4 GDP, rather, growth surprised across a significant number of industries."
Mike adds that in isolation, "the GDP data substantially reduce the RBNZ’s ability to wait until mid-2014 to raise interest rates and, indeed, the market now prices a roughly 35% chance of an OCR hike by year end."
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