We remain of the view the Reserve Bank will stay on the tightening path it indicated at the time of its March Monetary Policy Statement (MPS) and which it did nothing to deny at its April announcement. The moderation in the exchange rate over recent weeks has bolstered our belief in this. The March MPS track, you’ll recall, implied policy rate increases in June and July, and another in either October or December.
Read the full report: FX Research
BNZ