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."