Yesterday we got an hold monetary policy decision from the Reserve Bank of New Zealand
- RBNZ leave rates on hold, as expected
- RBNZ responses coming in - dovish but not as dovish as expected
- ASB reaction to RBNZ keeping rates on hold
Some quick thoughts from TD on the decision:
- RBNZ... statement suggests the RBNZ is content to assess the outlook
- the Bank highlighting no significant change in the monetary policy outlook, it implies further easing is more likely than not
- Overall the MPC sees risks skewed to the downside on a number of fronts - global trade/geopolitical tensions, low business confidence, likely delay in fiscal policy and likely low inflation
- We had anticipated the Bank to point to downside risks to its 2020 GDP forecasts, but the RBNZ was positive on the outlook 1 year out, so this did come as a surprise
What to watch ahead of the next RBNZ meeting:
- Near term, the ANZ's Business Outlook survey on 30th Sep
- and the NZIER's Quarterly Business Survey on 1st Oct will be key
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Next RBNZ policy meeting is
- 13 Nov 2019
- Monetary Policy Statement
- media conference
