VIEW: Barclays writes "based on the............>

RBNZ: VIEW: Barclays writes "based on the communication at the previous meeting,

the RBNZ's easing bias appears to have reduced. We think that the decision to

keep rates unchanged was driven by the bank's assessment that the effects of

earlier cuts were still filtering through the economy, suggesting that the

policy stance is stimulatory. In our view, the MPC will now be data dependent

and is only likely to cut rates if there are downside surprises in economic data

releases. Much higher-than-expected growth should lend support to the RBNZ's

bias. Therefore, we expect the RBNZ to keep rates on hold at its next meeting in

February. The Treasury recently announced a small fiscal stimulus, which in our

view supports our forecast of a pause in further easing. However, we see a

slight risk of one more cut in H1 20 if economic data surprise to the downside

data, given the fiscal stimulus will have an effect only with some lag."