HiFX Data Update - Finance Minister Bill English Interview

HiFX Data Update - Finance Minister Bill English Interview

Finance Minister Bill English has made the following comments in a media interview:

• If things worsen significantly the RBNZ has rate-cut room

• NZ better placed than most to weather the Brexit storm

• Brexit may increase the attractiveness of the NZD

• Cites NZ’s relative yield, growth outlook, and low debt

• Says credit rating agencies ‘quite positive’ on NZ

• No agreement yet on new RBNZ macro-prudential tools

• Says RBNZ has more work do to on concept of debt-to-income ratios

There is some speculation that any new macro-prudential measures may increase the deposit requirement for Auckland property investors to as much as 50%. At the margins, this would make it easier for the RBNZ to lower interest rates.

Current indicative levels are:

NZDUSD 0.7070 / 0.7095
NZDAUD 0.9545 / 0.9570
NZDEUR 0.6395 / 0.6420
NZDGBP 0.5305 / 0.5330
NZDJPY 72.50 / 72.75

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