Goldman Sachs: Expect RBNZ to hold OCR at 2.0% through 2017

Analysts at Goldman Sachs changed their call on the RBNZ rate cut outlook, now expecting no further rates cut almost through 2017.

Key Quotes:

“Economic growth broad-based, in house-hold spending, exports and nominal incomes; rally in dairy prices also suggest New Zealand has traversed key risk period”

“Very difficult to see RBNZ cutting rates into acceleration in income growth; multiple drivers of growth look sustainable”

“Change rate- cut outlook; no longer see 25-bps cuts in Nov and Feb; expect RBNZ to hold OCR at 2.0% through 2017”