Free Trial

Ahead of tonight's RBNZ release analysts at....>

RBNZ
RBNZ: Ahead of tonight's RBNZ release analysts at RBC note the unemployment rate
rate edged down to 4.5% in Q4, the lowest rate since the end of 2008 (cons:
4.6%) and employment grew a stronger-than-expected 0.5%q/q but the contained
backdrop for wage inflation suggests no immediate need for the RBNZ to respond.
They add, RBC and consensus expects the RBNZ to leave the OCR unchanged at
1.75%. Domestic data have been mixed since the board last meet in November
although the global backdrop continues to strengthen. Inflation has surprised to
the downside, the key wage measures show no signs of pick up despite a stronger
labour market, and the TWI is 2% higher than the RBNZ's current forecast for Q1.
Like its AU counterpart this week, it is likely to acknowledge the stronger
global outlook which should be supportive of NZ but a neutral bias and patient
stance on policy settings will remain.
-ANZ say "the RBNZ will again leave the OCR at 1.75% and retain a cautiously
upbeat stance.".  Developments since the November Statement have been mixed to
say the least, but we are not expecting the broad spirit of its assessment to
change a great deal.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.