30 Apr 2015
RBNZ likely to hold rates steady for the rest of the year – Westpac
FXStreet (Barcelona) - Dominick Stephens, Chief Economist at Westpac, believes that the RBNZ might keep OCR on hold for the rest of the year, but also warns of a 40% probability of two or more cuts ahead.
Key Quotes
“Today’s OCR Review gave the official stamp of approval to last week’s speech. The RBNZ has adopted a conditional easing bias.”
“The OCR will remain on hold unless domestic demand weakens and wage and price-setting behaviour settles below the inflation target.”
“We suspect wage and price-setting will indeed drop, but we doubt that demand will weaken.”
“There were no material surprises in the Review, but markets still reacted to confirmation of the conditional easing bias.”
“The OCR is most likely to remain on hold, but there is a 40% chance of two or more cuts over the coming year.”
“If cuts do occur, they would most likely occur late in the year.”
Key Quotes
“Today’s OCR Review gave the official stamp of approval to last week’s speech. The RBNZ has adopted a conditional easing bias.”
“The OCR will remain on hold unless domestic demand weakens and wage and price-setting behaviour settles below the inflation target.”
“We suspect wage and price-setting will indeed drop, but we doubt that demand will weaken.”
“There were no material surprises in the Review, but markets still reacted to confirmation of the conditional easing bias.”
“The OCR is most likely to remain on hold, but there is a 40% chance of two or more cuts over the coming year.”
“If cuts do occur, they would most likely occur late in the year.”