Originally Posted by
Hoop
I see the recent interest rate drop didn't see the Aussi$ tumble longer term ..it seems to have strengthened a bit..
Maybe the people are now seeing that lower interest rates may help the economy become stronger + equity markets and equalising with other currency with similar interest drops... thereby not always mean "a drop in interest rate = a drop in currency" in the longer term....The currency should reflect the health of that Nation
Let's see what happens to the NZ$ next week...Mr Wheeler has left things very late..the market is inverting and the 5yr swaps are at 2.08%..
Crikey!!! the market is telling us the OCR would not look out of place at 1.75%...The present 2.25% level looks very out of place now.
..It seems the RBNZ has it's tits in a tangle over John key's criticism and the media leak, they have gone "dark"..Not showing their intentions to give markets some sense of certainty and time to slowly correct is foolish in my opinion..Where is the Janet approach?...
Next week...The market is expecting the OCR to be cut by 0.25% to 2.0%...It wouldn't surprise me to see a 1.75% bombshell hit the markets...but I'm a pleb and my opinion is useless and worth nothing..