- ASB says RBNZ on hold at 3.5% cash rate until September 2015 (then again in March 2016 to a peak for this cycle at 4% …. were previously calling for a 4.5% peak this cycle)
- Previously looking for the next hike in March 2015
- Pushed out the next hike call due to the benign inflation reading today
Headlines on Bloomberg
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ANZ and BNZ views are posted here
in the wake of the NZ CPI today: New Zealand inflation data: CPI for Q3 +0.3% q/q (vs. +0.5% q/q expected)
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Added–> Westpac says RBNZ to keep cash rate at 3.5% until September 2015
Says further:
- Inflation looks likely to stay below 1.5% for another 6 months
- Developments in inflation have been weaker than expected
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Added …
JP Morgan:
- Forecast the next RBNZ OCR hike to the middle of 2015 (from March)
- “What prevents a deeper reassessment is the fact that growth is still strong, the labour market still is tightening, NZD is falling and LVR restrictions are likely to be removed in 2015, facilitating a greater role for monetary policy to play in setting overall credit conditions.”
