More from ANZ re: today's NZ Q4 CPI.....>

NEW ZEALAND: More from ANZ re: today's NZ Q4 CPI print: "Today's data were

undeniably solid. And looking forward, we may see some further uplift in

domestic inflation in the short term, given that GDP growth was stronger than

previously thought over the year to March 2018 and the economy (particularly the

labour market) is clearly stretched. But it is becoming increasingly apparent

that economic momentum is now fading, with forward-looking indicators pointing

to further gradual petering out. Resource pressures look to be past their peak,

meaning a durable lift in domestic inflation will be harder to achieve. Add

global risks to the mix, and it paints a picture of medium-term inflation that

in our view looks set to disappoint. The RBNZ's focus is forward-looking and it

is the durability of stronger inflation that matters. We expect to see a more

dovish RBNZ in time, though today's data will not contribute to any weaker tone

as soon as next month. Global risks and a weaker domestic data flow will need to

be acknowledged, however. It remains our view that OCR cuts will be required

late this year to keep growth at or above potential and keep inflation close to

the target midpoint."