RBNZ: No fireworks offered - ANZ

Analysts at ANZ note that the RBNZ held the OCR at 1.75% today, in line with the expectations and employed a marginally more dovish tone than in the November MPS.

Key Quotes

“It restored the comment that the next OCR move “could be up or down” and emphasised both upside and downside risks.”

“Downside developments since November have been incorporated in a slightly flatter projected OCR track, a weaker inflation track, and a weaker GDP growth track.”

“We continue to expect an OCR cut by year end as growth disappoints (starting in Q4); we are forecasting November, with two cuts to follow next year.”