RBNZ: No change in message - ANZ

RBNZ’s OCR Review will be the main focus for markets this week and analysts at ANZ are not expecting any change in message.

Key Quotes

“Developments since the February MPS have been, on balance, more positive. Business confidence has bounced off lows, housing market activity is stable, and notwithstanding the modest disappointment in Q4 GDP growth, activity indicators point to the economy continuing to show reasonable momentum and growth around trend. But this won’t change the RBNZ’s assessment much, as a broad spirit of cautious optimism regarding growth – and outright cautiousness with regard to the inflation outlook – have underpinned the RBNZ’s assessments for some time. And we expect that to continue for a while yet. The RBNZ is not expecting to tighten monetary policy until the second half of 2019 and it’s a view we share.”