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RBNZ Dated OIS Little Changed Ahead Of Q3 CPI

STIR

Q3 CPI is due shortly with Bloomberg consensus expecting +1.9% q/q and +5.9% y/y versus +1.1% and +6.0% in Q2. Q3 is expected to be boosted by higher accommodation and insurance prices plus increased government charges including public transport.

  • The RBNZ is likely to look through the data if it’s in line with expectations as it forecasted a strong Q3 outcome of 2.1% q/q and 6% y/y in August, higher than the Bloomberg consensus. Also, at its October meeting, it said it was focused on the medium term.
  • Nonetheless, easing inflation may spur investors to dial back their expectations for another rate hike. RBNZ dated OIS pricing is little changed today, with terminal OCR expectations at 5.72% (+22bps).

Figure 1: RBNZ-Dated OIS – Today Vs. Yesterday




Source: MNI – Market News / Bloomberg

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