NZ Q1 CPI detracts from case of April OCR cut - Westpac

Westpac notes that today's NZ CPI detracts from the case for an April OCR cut, adding that it constitutes a small upside surprise from the RBNZ's perspective.

Key Quotes

"As expected, falling petrol prices and airfares kept inflation limited in the quarter. Also as expected, we are finally starting to see some pass-through from last year's exchange rate decline into higher prices for certain tradable goods"

"This data detracts from the case for an April OCR cut. The details of the data will constitute a small upside surprise from the RBNZ's perspective"

"Non-tradables inflation, which is generally considered more important for monetary policy, was stronger than the RBNZ expected"