RBNZ to continue with its firmly neutral OCR outlook - Westpac

Analysts at Westpac expect the RBNZ to continue with its firmly neutral OCR outlook and repeat its long–held guidance that “Monetary policy will remain accommodative for a considerable period”.

Key Quotes

“Recent developments have been roughly neutral, with low inflation and the high exchange rate counterbalanced by a resurgent housing market and upwardly revised GDP.”

“Foreign exchange markets may react to any comment about the exchange rate being too high, but interest rate markets are unlikely to be perturbed by a steady–as–she–goes MPS.”