RBNZ will give its own projections for the OCR – RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, notes that the RBNZ announced yesterday that from November, the bank will give its own projections for the OCR "as a more transparent way of presenting the expected policy actions needed to achieve its inflation target".

Key Quotes

“This will provide greater clarity to the market regarding the RBNZ’s projected path of the OCR. The RBNZ had previously published the 90-bank bill rate track, which typically tracked the expected OCR path, but recent regulatory changes have altered the relationship between the two, “complicating the bank's communication of the monetary policy outlook".”