RBNZ unlikely to alter its stance at next week’s March OCR Review - Westpac

Dominick Stephens, chief economist at Westpac, suggests that the RBNZ is likely to repeat the key messages from February, including “OCR on hold through 2019 and 2020” and “the next move could be up or down.”

Key Quotes

“The details of the statement will also be similar to February, emphasising global risks and a positive domestic outlook.”

“Recent developments have been in line with RBNZ expectations, so there is no reason for the RBNZ to change stance.”

“The impending move to a Monetary Policy Committee is another reason for the RBNZ to avoid rocking the boat right now.”

“Markets would be surprised by an unchanged statement from the RBNZ. Swap rates and the exchange rate would rise a bit.”