RBNZ: Neutral market pricing intact - Westpac

Imre Speizer, Research Analyst at Westpac, points out that the RBNZ’s OCR Review yesterday left market pricing intact with Westpac’s own scenario analysis earlier in the week assigned a 90% chance to a market-neutral scenario which comprised an unchanged RBNZ message, and that’s exactly what we got.

Key Quotes

“Had yesterday’s announcement been a full-blown MPS, we suspect the policy message would not have been much different. Our own quantification of all the major changes between the February and March meetings resulted in a 0bp changed to the OCR projection. Higher near term inflation and a weaker exchange rate are offset by cooler housing, lower dairy prices, and slower GDP growth.”