ASB updated their call for the Reserve Bank of New Zealand outlook last week, here: New Zealand: ASB expects RBNZ on hold in October and cut again in December

That was in response to the NZ inflation data the same day

ASB are fleshing out more detail to the call today in a client note, but in summary:

  • We now expect the RBNZ will remain on hold in October, and cut the OCR 25bp in December
  • The RBNZ appears comfortable to wait, though we believe an immediate cut would be more prudent
  • We are also sceptical that inflation will be as strong as the RBNZ currently expects over 2016 and 2017.

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Just to be clear ... not a change in view from ASB from last week, just more detail added to a previous view.