RBA May Join RBNZ's Easing In Next 6 Months

Forex News RBNZ cutting rates at time other central banks like Fed, ECB, BoE talking about prospect of tightening clearly displays that NZ is "in a different part of the economic cycle than many of the key trading partners," says Bank of New Zealand head of market economics Stephen Toplis; adds wouldn't be surprised if RBA followed suit with cut in next 6 months as Australia has same tight starting point for monetary conditions, signs domestic economy contracting, issues with credit crisis and cost of funds to banking sector. "Monetary conditions in New Zealand are really tight. So you can allow interest rates to fall and still be adopting quite tight monetary policy," which not the case in most other places.