RBNZ’s McDermott: Chances of a rate cut have increased

Renters reports key comments delivered by the Reserve Bank of New Zealand John Assistant Governor McDermott in an interview on Thursday.

RBNZ was worried yield curve had priced in a rate hike.

Wanted markets to understand that a rate hike is currently off the table.

RBNZ needs to see growth pick up in Q3.

Would need to see core inflation back above 2% to hike.

The NZD/USD pair seems to have accelerated its decline on McDermott’s comments, now testing the 0.6650 level – fresh 2.5 years lows.