Bank views on today's NZ CPI: - ANZ:....>

NEW ZEALAND: Bank views on today's NZ CPI:

- ANZ: Headline CPI inflation was slightly stronger than expected in Q1, largely

owing to the magnitude of change in some of the more volatile components. The

fall in annual headline inflation is more noise than signal. Nonetheless,

evidence of a broadening in domestic price increases beyond housing remains

elusive. Core inflation measures were mixed, but broadly stable overall. We

suspect the RBNZ will continue to bide its time until there's a little more

certainty that inflation is set to rise. A meaningful lift in wages being one

likely catalyst.

- ASB: Tradable inflation remains the key drag on headline inflation, with

quarterly tradable inflation negative for the second consecutive quarter. At the

same time, non-tradable inflation is not lifting fast enough to offset the

softness the tradable drag. Core inflation measures also continue to point to a

subdued underlying picture, with a number of measures easing on an annual basis.

We do not expect the RBNZ to change course as a result of the release & believe

the RBNZ will remain comfortable leaving monetary policy on hold for now.