Brace for impact - OCR Preview: RBNZ on hold at 2.50% - 29 April 2010 • April 29 OCR review: On hold at 2.50%, hikes on the way.

• The recovery is panning out at least as strong as the RBNZ expected. Inflation is currently at a low ebb but is expected to rise in coming years, even with higher rates.
• We expect a series of 25bp hikes starting at the June Monetary Policy Statement. More>>

 

This morning the RBNZ left the OCR unchanged at 2.50%. With the next review falling on 10 June, this means the RBNZ has now fulfilled its commitment to keep rates at current levels until around the middle of the year. The flipside is that the RBNZ is now free to begin normalising policy settings at any time; and without spelling it out too finely, today’s statement has confirmed that every OCR review from here on is ‘live’. More>>

 

See also the Westpac Morning Report and Weekly Commentary More>>

Previous Westpac Bulletins

Westpac Bulletin - Comfortably numb(ered) - OCR Preview: RBNZ on hold at 2.50% - April 22 2010 More>>
Westpac Bulletin - Level pegging - NZIER business confidence rises in Q1 - Q1 QSBO Review - 6 April 2010. More>>
Westpac Bulletin - Primary primed, goods good, services so-so - Q4 GDP rises 0.8% q/q - 25 March 2010. - More>>
Westpac Bulletin - Consumer optimism wavering - Q1 Westpac McDermott Miller Consumer Confidence Index: 114.7 - 17 March 2010 - More>>
Westpac Bulletin - More bang for the buck - Terms of trade rise 5.7% in Q4 - 10 March 2010 - More>>