RBNZ to leave the OCR at 1.75% - Westpac

Analysts at Westpac expect the RBNZ will leave the OCR at 1.75% and reiterate that monetary policy is on hold for the foreseeable future.

Key Quotes

“The press release will probably emphasise the softer tone to recent data, and the RBNZ’s discomfort with the high exchange rate.”

“The RBNZ may expunge any hint of hikes from its OCR forecast, and issue slightly more dovish guidance in the press release.”

“An MPS along these lines would surprise financial markets, possibly causing swap rates and the exchange rate to fall on the day.”