*** Bank Views following the RBNZ MonPol.......>

RBNZ: *** Bank Views following the RBNZ MonPol decision (3/3):

- TD: In a bold move, Orr stated up front that "The OCR will remain at 1.75% for

some time to come. The direction of our next move is equally balanced, up or

down. Only time and events will tell." While subtle, the forward guidance still

hints that the next move is up for the cash rate. As much as we remain of the

view that the RBNZ should be getting ahead of the curve with a positive output

gap and full employment ahead of the expansionary fiscal policy onslaught, we

push out our first RBNZ +25bp hike from November '18 to February '19.

- Westpac: Despite these communication improvements, the actual substance of the

OCR outlook has not materially changed. The small changes bring the RBNZ ever so

slightly further into line with our long-held view that the OCR will have to be

held low for longer in order to produce a sustained lift in inflation.