Analysts at ANZ noted that after the RBNZ surprised both markets and commentators with the dovishness of its forecasts yesterday, today the Reserve Bank of Australia has its say.
Key Quotes:
"ANZ expects no material changes given the suggestion on Tuesday that the economy is evolving broadly as the RBA expected, with growth expected to “average a bit above 3 per cent in 2018 and 2019”.
"The RBNZ, on the other hand, lowered its growth forecast over 2018 by around half a percent on a downward starting point surprise, softer business sentiment and a weaker housing market."
"Certainly the two economies seem to be in quite different head spaces at the moment (business confidence in Australia is at its 20-year average, while it’s tanking in NZ) despite the two economies facing many of the same challenges and risks (weaker housing market with high household debt, potential China slowdown). Though the tone is very different, neither central bank appears to be in a hurry to change the cash rate."
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