ANZ New Zealand were forecasting a Reserve Bank of New Zealand 25bp cut in May this year
- Not any longer, now projecting the RBNZ will keep the cash rate unchanged until the middle of 2021.
OCR is currently 1%.
- improvement to activity indicators
- more government spending has been announced
- better housing market
- inflation appears to be settling close to RBNZ target
- "It now looks more likely that the economy will be able to generate growth around trend over the medium term, despite headwinds. The RBNZ has scope to be patient and await further signals on the economic direction. A near-term cut would require an abrupt change of circumstances."