VIEW: Westpac Comfortable Forecasting No Change In The OCR Until 2024

In the wake of today's decision Westpac note that "the RBNZ wants to see the whites of the eyes of inflation and employment before it shifts monetary policy. The RBNZ wants to let things run for a while, and is prepared to wear occasional episodes of inflation rising to about 2% in order to be sure that inflation and employment have returned to target sustainably. This was exactly what we were expecting from the RBNZ. Financial markets have been flirting with the idea that the RBNZ could tighten monetary policy next year, and today's statement will have discouraged those holding that view. However, interest rates and the exchange rate did not react much to the statement. After today's statement, we remain comfortable forecasting no change in the OCR until 2024."