The Reserve Bank has a lot to try to achieve at this Thursday’s OCR review. Within its usual handful of paragraphs it will probably want to come across as less committed to the clear policy tightening path it surprised many with at its December Monetary Policy Statement (MPS). Recall, this entailed +75bps on the OCR, starting later this year, to 4.25% by late 2017. However, the Bank won’t want to give in to the point of encouraging the market’s recent eagerness to price OCR cuts based, as it has been, on strong global moves in that direction.
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