VIEW: KiwiBank notes that "the RBNZ's..........>

RBNZ: VIEW: KiwiBank notes that "the RBNZ's Monetary Policy Committee (MPC)

delivered what was widely expected. The OCR was unchanged 1.0% and the

accompanying statement maintained that further policy stimulus might be needed.

The RBNZ is in wait and watch mode, after delivering an outsized 50bp cut in

August. The one-page statement and summary record of meeting made it clear that

developments haven't changed substantially from the August MPS. And in the

August MPS the RBNZ's forecasts pointed to a decent 40% chance of more action.

The MPC stated that it is pleased how financial conditions have evolved

following August's cut. Financial conditions (through lower interest rates and a

lower currency) are supportive of growth. The currency is tracking well below

even the RBNZ's MPS forecast, and banks have been trying to outdo each other

with new record low mortgage rates. But what's important is how this translates

into real activity and inflation. Going by recent business and consumer

confidence data we will have to wait and see. Because we haven't seen anything

yet."