RBNZ: Complicating job once again - ANZ

Research Team at ANZ, suggests that familiar tensions between housing and NZD strength are complicating the RBNZ’s job once again.

Key Quotes

“The outlook for the OCR is delicately poised as a result. It is not the most optimal policy outcome, but escalating pressures mean additional macroprudential measures look set to be a partial circuit breaker to this tension. In fact, we would not be surprised to get some sort of firmer signal in the coming months.

Q1 GDP data this week should be a little softer than growth recorded over the second half of 2015, although timelier signals on Q2 activity are generally hinting that any Q1 softness is likely to be temporary. A further modest lift in GDT dairy prices is also expected this week.”