RBNZ clearly don't want a strong currency – ING

The RBNZ ramped up its jawboning efforts by dropping the threat of FX intervention into the mix, notes the analysis team at ING.

Key Quotes

“Like the RBA, officials noted that a strong currency comes at an external disinflationary cost - which is undesirable at a time when domestic price pressures have also slowed down.”

“Despite the RBNZ's forward policy path pointing to a 3Q19 hike, markets continue to price in a 25bp policy increase 12 months earlier. PPI data (Wed) likely to test this hawkish assumption.”