RBNZ OCR: Still "up or down" - ANZ
|Analysts at ANZ note that the RBNZ left the OCR at 1.75%, as universally expected as they retained a consistent message, reiterating that the next move in the OCR could be “up or down” and that they expect to keep the OCR at “an expansionary level for a considerable period”.
Key Quotes
“Overall, the RBNZ noted that their projections were “little changed” from the August Monetary Policy Statement, with the OCR expected to remain at its current level “through 2019 and into 2020”.”
“Q2 GDP was stronger than they expected and there is accordingly a little less spare capacity in the economy than previously assumed, but forward-looking indicators have been a touch more negative and the outlook is far from assured.”
“The statement remained firmly in neutral territory.”
“The words around the inflation outlook were slightly more cautious.”
“We see the OCR on hold for the foreseeable future. But with inflation still low and the activity outlook uncertain, the RBNZ stands ready to act should the activity outlook disappoint. Accordingly, all eyes will be on the economic data-flow into the end of the year.”
“Today’s Review appears to have been successfully geared to generate little market reaction.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.