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From “Fast and Furious” to “Frozen” – RBNZ to keep the OCR on hold
We expect the Reserve Bank to leave the OCR unchanged at 5.50% at next Wednesday’s monetary policy review. In the May Monetary Policy Statement the RBNZ gave markets a strong steer that it expected that no further increases in the OCR would be required and that now is the time to “watch, worry and wait”. In signalling this ‘end of cycle’ stance, the RBNZ was at pains to emphasize that there was no case to expect any cuts to the OCR for a good while yet. The RBNZ’s forecasts indicated that the first easing in policy would need to wait until late next year. The data flow since May will likely have given ... (full story)