Sumitomo Mitsui Tokyo chief FX strategist Hirofumi Suzuki said the RBNZ’s pause
was unexpected. Recent rises in long-term yields and equity declines have
tightened New Zealand financial conditions, making a rate hold more likely.
Still, with the RBA and other major central banks maintaining a hawkish stance,
Suzuki said the RBNZ has little choice but to keep a hawkish tilt; he expects
cautious further rate hikes and sees downside pressure on the NZD.
