Quick thoughts on RBNZ - Westpac

"The RBNZ's Monetary Policy Statement this morning kept the OCR on hold at 1.75%, as was widely expected. The policy guidance paragraph was largely a repeat of August's. Markets were unsurprised," notes Westpac analyst Imre Speizer.

Key quotes:

"The RBNZ’s Monetary Policy Statement this morning kept the OCR on hold at 1.75%, as was widely expected. The policy guidance paragraph was largely a repeat of August’s. Markets were unsurprised."

"The key policy guidance paragraph today was: “Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly.”  This is exactly the same as August’s guidance paragraph."

"The NZD exchange rate narrative was softened a little, necessary given the NZD TWI is 1.5% below the RBNZ’s forecast: “The trade-weighted exchange rate has eased slightly since the August Statement. A lower New Zealand dollar would help to increase tradables inflation and deliver more balanced growth..” That compares with August’s: “The trade-weighted exchange rate has increased since the May Statement, partly in response to a weaker US dollar. A lower New Zealand dollar is needed to increase tradables inflation and help deliver more balanced growth.”"

"There’s not much here for markets to react to, apart from a hint of a possible downgrade to its construction activity forecast. We suspect markets will need to wait until the November MPS, when the RBNZ comprehensively updates its forecasts, to learn of any changes in the RBNZ’s thoughts."

"NZD/USD slipped a bit from 0.7220 to 0.7210 in response, and AUD/NZD rose from 1.0880 to 1.0895, hardly qualifying as a reaction. 2yr swap rates are unchanged at 2.22%."