28 Apr 2016
RBNZ OCR Review: Softly, softly – Westpac
Anne Boniface, Senior Economist at Westpac, notes that as expected, the RBNZ left the OCR unchanged at 2.25% at today’s OCR Review.
Key Quotes
“The RBNZ retained its easing bias, but guidance on further interest rate cuts was less emphatic than we were expecting.
Instead, the RBNZ’s statement brought inflationpositive developments in the domestic economy to the fore. And they sounded less worried about the downside risks to the inflation outlook than in the March MPS.
We continue to expect another rate cut from the RBNZ, most likely in June. Today’s statement suggests that, for now, the RBNZ sees 2% as the low in the OCR.”
Key Quotes
“The RBNZ retained its easing bias, but guidance on further interest rate cuts was less emphatic than we were expecting.
Instead, the RBNZ’s statement brought inflationpositive developments in the domestic economy to the fore. And they sounded less worried about the downside risks to the inflation outlook than in the March MPS.
We continue to expect another rate cut from the RBNZ, most likely in June. Today’s statement suggests that, for now, the RBNZ sees 2% as the low in the OCR.”