Preview of the RBNZ February 2018 Monetary Policy Statement – Westpac

Analysts at Westpac offered a preview of the RBNZ February 2018 Monetary Policy Statement.

Key Quotes:

  • "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."