RBNZ responses to come in «is the key message … RBNZ … neutral. But …»

The ASB on the Reserve Bank of New Zealand announcement earlier todaySummary:

  • We do not expect much change in the wording of the declaration, and it was not there. The key message is the RBNZ has maintained its neutral position along with the maintenance of interest rates.
  • But there is a hint that the RBNZ raised its growth forecasts slightly to the downside, especially given the weakness of the construction was in spite of the strong demand. What is the significance of the changes are necessary to wait the full projections of the November Monetary Policy statement. But it is also quite possible that the outcome of the election eventually brings more fiscal stimulus in that Budget, the 2017 scenario, the RBNZ will still be using. Even with a certain potential to shave its growth outlook, the RBNZ still appears comfortable with the balance of risks to inflation.
  • So, as usual, the uncertainties remain. Could short-term growth a little lower, especially if there is any election-related uncertainty? Could the medium-term growth to get a touch more financial support? What is fairly certain, it is the RBNZ does not need to do anything for a certain period of time, until 2019 in our point of view.

The bold characters are mine, something to look forward

  • I posted it already:
  • RBNZ announce no change to the cash rate, as expected
  • RBNZ responses to hot take #1

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