RBNZ: Neutral market pricing intact - Westpac

Sandeep Kanihama FXStreet Contributor

Imre Speizer, Research Analyst at Westpac, points out that the RBNZ’s OCR Review yesterday left market pricing intact with Westpac’s own scenario analysis earlier in the week assigned a 90% chance to a market-neutral scenario which comprised an unchanged RBNZ message, and that’s exactly what we got.

Key Quotes

“Had yesterday’s announcement been a full-blown MPS, we suspect the policy message would not have been much different. Our own quantification of all the major changes between the February and March meetings resulted in a 0bp changed to the OCR projection. Higher near term inflation and a weaker exchange rate are offset by cooler housing, lower dairy prices, and slower GDP growth.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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