[NZD] RBNZ indicates further depreciation at NZD 29-Jul-2015

Data: RBNZ statistics

RBNZ governor's comment implied further weakness at New Zealand Dollar near future. According to the comment, inflation figures in a last few years encouraged to ease financial market in New Zealand economy.

Ref. 
 RBNZ >> Monetary policy supporting growth and inflation goal
 The Reserve Bank today confirmed that at this stage some further monetary policy easing is likely to be required to maintain New Zealand’s economic growth around its potential, and return CPI inflation to its medium-term target level.

Further exchange rate depreciation is necessary, given the weakness in export commodity prices and the projected deterioration in the country’s net external liabilities over the next two years, Governor Graeme Wheeler said.

 Scoop >> HiFX - RBNZ Governor Wheeler comments - NZD higher

 On the other hands, property market in New Zealand has been hot for a last few years. Normally, easing financial market brings cheap money in the market, and it creates bubble in stock market or property market. For example, in London, the property market had been upward trend while quantitative easing was introduced.
 Commodity market has been sharply downward trend, and it is burden in the countries such as New Zealand, Australia, Russia or Canada.


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