Nomura Research discusses its reaction to the RBNZ's June policy statement.
"In our experience, the RBNZ is quite relaxed about surprising the market from time to time, and we have not found its communication to be a good guide of its future actions. We suspect today’s dovish communication was partly directed at the higher NZD and think that its “bark could be worse than its bite” when it comes to future easing," Nomura notes.
"Our base case remains for no further easing, although future global, COVID and NZD trends will be the key risks to watch. Nevertheless, today’s guidance, and concern on NZD, is relatively stronger than what we have seen from the RBA, and market speculation about potential further policy easing in NZ could support a higher AUD/NZD as we head towards August," Nomura adds.