Ahead of the RBNZ meeting later today..........>

KIWI: Ahead of the RBNZ meeting later today (2000GMT) BNP Paribas Strategists

expect the RBNZ to remain on hold and will look to see how the tone of the

statement has changed following the recent depreciation of NZD. BNP add,

"sentiment towards the NZD remains poor, with large short NZD positions

continuing to be held" according to BNP Paribas FX Positioning Analysis. Future

policy expectations may rest on whether New Zealand's Labour-led coalition

pushes ahead with plans to reform the RBNZ, shifting to a dual mandate,

targeting both inflation and full employment. They note, New Zealand's

unemployment rate is already low at 4.6%, within the Treasury's recent range of

estimates of full employment, so the extent to which a dual mandate would push

NZD lower may be limited.

- RBC economists say "it is unlikely to shift stance but we do expect a small

lift to forecasts on the back of firmer inflation and employment data since the

last meeting". They expect the bill track will remain unchanged, implying a

steady cash rate of 1.75% until well into 2019.