By and large, today’s OCR review was simply a restatement of the June MPS. Indeed, much of the text was identical. The only slight change was the stated admission that the “removal of monetary stimulus will likely be needed in the future”. But while a few folk got excited by this, it was hardly ground-breaking news given that the RBNZ’s previously published interest rate track clearly expresses a tightening trend.
The Reserve Bank has stuck to its mantra that it expects “to keep the OCR unchanged through the end of the year”. We maintain that these are weasel words that are not entirely consistent with the Bank’s rate track, which shows a first rate increase in Q3 2014.
Read the full report: Economic Research
BNZ