RBNZ: Policy may be on hold longer than previously expected - BBH

Analysts at BBH point out that the Reserve Bank of New Zealand provided a dovish hold for investors yesterday, and the New Zealand dollar fell to the its lowest level since January 10 (~$0.7175).  

Key Quotes

“The central bank pushed out further when its expects to reach its inflation target (now late 2020, a two-year delay) and shaved its GDP forecast.  This signals that policy may be on hold longer than the market previously expected.  The strength of the New Zealand dollar (~5% on a trade-weighted basis in the past 2.5 months) was unexpected, but the central bank continues to expect it to weaken.”