Analysts at Westpac offered a preview of the RBNZ February 2018 Monetary Policy Statement.
- "The past year has been one of unprecedented consistency from the RBNZ.
- We expect that consistency to continue next week, with no change to the OCR outlook or policy guidance wording.
- Recent developments have been roughly neutral from the RBNZ’s perspective.
- The RBNZ is likely to express its displeasure about the recent rise in the exchange rate, which would elicit a reaction on foreign exchange markets.
- The other key developments the RBNZ will discuss include surprisingly weak inflation and the renewed vigour of the housing market.
- We have long argued that inflation will prove lower than the RBNZ expects, and continue to forecast OCR hikes only from late-2019."