Responses to the Reserve Bank of New Zealand monetary policy decision continue to come in
ASB now ... "We continue to expect a 2% OCR next year; June the earliest for the next cut."
- Our view is the circumstances will warrant further OCR cuts in June and August next year to 2%.
- We are firmly of the view inflation pressures will not prove to be as strong as the RBNZ currently estimates - and that eventually the RBNZ will respond to that.
- The risks to the RBNZ's inflation forecasts are all clearly skewed to the downside (in our opinion), leaving it little wriggle room.
On the currency:
- Without signalling further cuts, we don't expect the RBNZ to achieve its TWI forecasts over the first half of 2016
- The RBNZ still expects the NZD to decline over 2016
- The RBNZ remains frustrated over the strength in the NZD, describing the current level as "unhelpful".
- "there are risks that dairy prices remain weak for longer."