RBNZ meeting this week - no change is expected

RBNZ meeting this week - no change is expected - preview 4

Tuesday, 09/05/2017 | 02:57 GMT-0

The Reserve Bank of New Zealand monetary policy meeting is this week

Announcement due Thursday 11 May (local NZ time)
Announcement due 2100GMT on May 10
The current official cash rate is 1.75%
As well as the OCR announcement there will be an accompanying Monetary Policy Statement & media conference

Preview from CBA:

NZD/USD can creep higher this week after last week's decline to the bottom of its 11 month range. Most of the major commodity currencies were under downward pressure last week as commodity prices fell (dairy prices were an exception to this outcome).
We expect the RBNZ to bring forward the official cash rate track in this week's Monetary Policy Statement on Thursday, which will be supportive for NZD/USD
We anticipate the RBNZ will show the first hike in the first half of 2019
The RBNZ, similar to the RBA, Fed and even the cautious ECB, are set to be more confident that CPI inflation will sustainably retum to their inflation target, in part because of the large increase in inflation expectations
New Zealand 2 two year ahead inflation expectations increased significantly from 1.92% to 2.17% last week
The strong lift in inflation expectations reinforce our view that the RBNZ will be comfortable that expectations are now anchored near the target and are no longer a downside risk to inflation outcomes
Our New Zealand economist still expect the first rate hike will be delivered earlier in November 2018, although the risks are for an earlier hike

I've posted other previews for this week's RBNZ meeting earlier:

And: