RBNZ to once again leave the OCR at 1.75% - ANZ

Analysts at ANZ expect the RBNZ to once again leave the OCR at 1.75% and reinforce an ultra-neutral stance.

“While global growth is looking stronger, the weight of domestic developments augurs more caution; growth is barely at trend.”

“Economic developments, election proximity, and RBNZ leadership changes all mean this decision will be somewhat of a ‘non-event’.”

“Our bias is still that the OCR will be lifted late next year. Potential shifts in fiscal policy and a lower NZD (when the liquidity cycle turns) are major factors nudging us towards the OCR moving up. However, it is hardly a strongly held view, with the risks skewed towards an even longer policy siesta. There is simply not sufficient excess demand to drive inflation up.”