"However they have also revised down their forecasts for milk production, which is now expected to be down by more than 5% on last season.
Our NZ economists’ forecast for the 2015/16 milk price is NZD4.30, but with global dairy prices up nearly 50% from their recent lows, the risks to this clearly lie to the upside (we will formally review our forecast after next week's dairy auction). This is a key reason why we expect the RBNZ will decide to keep the OCR on hold at its October meeting before resuming cuts in December."
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