• Every economist surveyed by BBG forecast no change in rates
  • Growth has slowed in recent months but is expected to accelerate
  • High NZD continues to be a significant headwind
  • Full statement

The overall outlook is for stronger domestic demand and the elimination of current excess capacity by the end of next year.

NZD rallying. Although there is no shift in bias, the overall tone of the statement is much better than the Sept statement.

The market is priced for another 25 bps cut in the next year. A quick read of the statement shows that the rebound in GDP is mostly due to earthquake reconstruction but I didn’t see anything to indicate a cut is coming at any point.