28 Apr 2016
RBNZ stays pat with OCR maintained at 2.25% - Deutsche Bank
Research Team at Deutsche Bank, notes that the RBNZ announced the outcome of its latest policy review and as was fairly widely expected, follow a surprise rate cut at the March review the Bank decided to keep its OCR at 2.25% at this review.
Key Quotes
“But has maintained an easing bias (the Bank notes “Further policy easing may be required to ensure that future average inflation settles near the middle of the target range. We will continue to watch closely the emerging flow of economic data”).
All else equal, should the RBA ease policy on 3 May the pressure will be on for the RBNZ to follow suit on 9 June. That said, we don’t view further easing as ‘a done deal’ (nor do we view it as desirable). Much will depend on the domestic and global data flow over coming weeks, together developments in financial conditions.”
Key Quotes
“But has maintained an easing bias (the Bank notes “Further policy easing may be required to ensure that future average inflation settles near the middle of the target range. We will continue to watch closely the emerging flow of economic data”).
All else equal, should the RBA ease policy on 3 May the pressure will be on for the RBNZ to follow suit on 9 June. That said, we don’t view further easing as ‘a done deal’ (nor do we view it as desirable). Much will depend on the domestic and global data flow over coming weeks, together developments in financial conditions.”