Bank desk views on today's NZ Q3 CPI....>

NEW ZEALAND: Bank desk views on today's NZ Q3 CPI release:

- ANZ: Headline CPI came in stronger than market & our own exp. Non-tradables

was as we expected at 0.8%, with tradables a touch stronger at 0.9%. The suite

of core inflation indicators was broadly stable. The solid CPI print does not

take the possibility of an OCR cut off the table.

- ASB: Both non-tradable & tradable inflation was stronger than we had

anticipated. However, the majority of the surprise was on the tradable side of

the equation, with petrol & airfare costs rising more than anticipated. Looking

through the lift in headline inflation, core measures remained largely unch. As

a result, we don't expect the RBNZ to feel any pressure yet to respond.

- Westpac: Today's result was a substantial surprise relative to the RBNZ's

forecast. The rise in fuel prices since the RBNZ made its forecast will account

for some of this, but not all. Moreover, the more persistent non-tradables

component was also stronger than the RBNZ exp., though we don't know how much of

the surprise was concentrated in a single item. This makes the prospect of

interest rate cuts a more difficult prospect for the RBNZ.