Latest commentary from Westpace on the RBNZ
- RBNZ's forecast for 2018 GDP was too high
- GDP figures are critical to the outlook for interest rates
- If RBNZ receives successive downside surprises on GDP growth, then they will turn more dovish
The commentary adds that "that is why we are forecasting no hike in the OCR until late-2019, compared to the RBNZ's forecast that the OCR will rise in mid-2019, and compared to what markets are pricing in for a hike in early-2019".
The RBNZ left its overnight cash rate (OCR) unchanged in its latest meeting last week.
