Lee Sue Ann, Economist at UOB Group, suggests the RBNZ is likely to leave the OCR unchanged at 0.25% at its event later this week.
“The local vaccination programme is still at an early stage and the COVID-19 pandemic is still evolving; new housing tax policy and tighter Loan-to-Value Ratio (LVR) restrictions will dampen investor demand for some time; and the construction sector is expected to remain soft.”
“Further, sectors reliant on international tourism will continue to struggle despite unrestricted domestic activity.”
“Our call remains for the OCR to be unchanged at 0.25% until at least early 2023.”
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