VIEW: Westpac believe that "the RBNZ may.......>

RBNZ: VIEW: Westpac believe that "the RBNZ may shift to a neutral OCR outlook at

its February Monetary Policy Statement, after a wave of strong economic and

housing data and the announcement of a sharp lift in government infrastructure

spending. Labour market data and the developing coronavirus outbreak are key

uncertainties that could change the outlook." But they haven't changed their

view re: timing of a cut, noting "we still think the longer-term risks are more

tilted towards a lower OCR than higher. We expect the economic data to

deteriorate in both the US and Australia. Consequently, we expect both the Fed

and the RBA to reduce official interest rates this year by more than markets

currently anticipate. If we are correct about that, the RBNZ may be forced to

follow suit lest the exchange rate rise unhelpfully. We have pencilled in an OCR

for August this year, reflecting where we think the balance of risks lie."