RBNZ: Market pricing only 50% chance of a hike in Nov - Westpac

Imre Speizer, Research Analyst at Westpac, explains that the market pricing for the RBNZ has stabilised, with the next hike almost fully priced for Feb 2018, and Nov 2017 stuck around a 50% chance.

Key Quotes

“RBNZ Governor Wheeler gave a speech on Thursday covering the monetary policy outlook. There was little fresh information, rather a reiteration (elaboration perhaps) that it expected to remain on hold for the next two years and judged risks to be balanced - the domestic economy posed upside risks but the global environment posed downside risks.”

“Interestingly, the OCR forecast was given some prominence, with Wheeler effectively dismissing the notion that the forecast rise in 2020 implied a slightly hawkish bias.”