Deutsche Bank says RBNZ will leave cash rate at 3.5% until 2016

Deutsche Bank says RBNZ will leave cash rate at 3.5% until 2016

Bloomberg with the research note summary from Deutsche Bank NZ Chief Economist Darren Gibbs:

• “Given the very low headline inflation readings that are now in prospect through this year, we think the market is correct to conclude that it very unlikely that the RBNZ would seek to raise the OCR in 2015”
• “We pencil in two further 25 bps hikes around the middle of next year”
• Timing and extent of ratre increases will depend critically on the behavior of the exchange rate and other factors impinging on the inflation outlook

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Note, Deutsche had yreviously expected rate rise in 3Q 2015