RBNZ: No change in the OCR outlook expected - Westpac

According to Dominick Stephens, Chief Economist at Westpac, next week’s MPS will reveal a great deal about Adrian Orr’s style and how the OCR will be affected by the new PTA and they don’t expect a change in the OCR outlook.

Key Quotes

“But if there is a change, it will be in the direction of slightly earlier hikes than previously signalled.”

“The wording of the MPS and the press release will be different, but markets shouldn’t necessarily take that as a signal – it might just reflect the new Governor’s communication style.”

“The RBNZ’s new labour market directives probably won’t cause a change in the OCR outlook this time.”

“However, the labour market target might matter at other points in time.”