VIEW: Westpac have changed their RBNZ call.....>

RBNZ: VIEW: Westpac have changed their RBNZ call and "are now forecasting that

the RBNZ will keep the OCR unchanged at the November Monetary Policy Statement."

They write in a note: "Previously, we were forecasting a 25 basis point cut in

November, although we considered it a very close call. The RBNZ's forecasts and

rhetoric had been 50/50 on whether a cut might be required at some stage, but we

thought a rash of downside surprises would prompt the RBNZ to cut as soon as

November. That is not the way the dice have fallen. True, economic growth

remains subdued and business confidence is very low. But on balance the outlook

for inflation and employment has actually lifted a little since August, because

the exchange rate is well down, inflation has surprised to the upside, and the

housing market is stirring. In addition, global financial market sentiment has

improved and the US and Australian central banks are suggesting that they have

cut rates far enough for now." Westpac "are now forecasting a cut in February,

based on our view that global economic sentiment will worsen again."