On the back of today's NZ Q4 CPI........>

NEW ZEALAND: On the back of today's NZ Q4 CPI print, ASB write "the CPI lifted

0.1% in Q4, to be 1.9% higher on an annual basis. However, the details of the

release were surprisingly strong, with non-tradable and measures of underlying

inflation all lifting. Further, there was evidence that price pressure is

spreading beyond housing-related sectors. From the RBNZ's perspective,

underlying inflation was stronger than expected and suggests that economic

momentum over 2017 and early 2018 supported inflation pressures. However, given

the recent slowdown in growth and the ongoing downside risks to the inflation

outlook, we expect the RBNZ to remain patient for now. We don't expect the RBNZ

to raise the OCR for a considerable period of time, but today's release confirms

that there is a high hurdle to rate cuts in the current environment."