RBNZ to leave the OCR at 1.75% - Westpac

Dominick Stephens, Chief Economist at Westpac, expects the RBNZ to leave the OCR at 1.75% and reiterate that monetary policy is on hold for the foreseeable future in its forthcoming meet.

Key Quotes

“The press release will probably emphasise the softer tone to recent data, and the RBNZ’s discomfort with the high exchange rate.”

“The RBNZ may expunge any hint of hikes from its OCR forecast, and issue slightly more dovish guidance in the press release.”

“An MPS along these lines would surprise financial markets, possibly causing swap rates and the exchange rate to fall on the day.”