VIEW: Westpac write "our interpretation is.....>

RBNZ: VIEW: Westpac write "our interpretation is that the RBNZ is leaving open

the option of cutting the OCR if required, rather than signalling that a cut is

imminent. This was a statement about a shift in balance of risks. Our current

forecast is that the OCR will remain unchanged over the coming three years, but

today does challenge that view. We will be watching over the next few days for

further clues as to the RBNZ's intentions. The complication with forecasting the

OCR at present is that a Monetary Policy Committee is about to take over the OCR

decisions. The new committee could hold different views to the current

leadership. We expect the Minister of Finance to announce the membership of the

RBNZ's new Monetary Policy Committee either tomorrow or Friday, given that it

takes over OCR decision making on Monday 1 April. The composition of that

committee will influence our thinking on what the RBNZ might do."