RBNZ to keep the OCR unchanged at 1.75% - ANZ

Sharon Zollner, chief economist at ANZ, expects that the RBNZ is likely to leave the OCR unchanged at 1.75% at its Monetary Policy Statement (MPS) next Wednesday at 2pm with a more dovish tone.

Key Quotes

“Domestic data since the November MPS has been mixed but the economy is clearly coming off the boil. Trading partner growth is slowing markedly.”

“We are forecasting an OCR cut by year-end, whether the RBNZ changes their growth and OCR forecasts meaningfully next week or not.”

“We expect the economy to continue to fail to accelerate as the year progresses, making the case for easier policy clear in time.”