OECD comments on New Zealand ahead of 2-yearly report
- RBNZ should refrain from cutting rates
- Sees growth of 3.4% in 2015, 3.0% 2016
- Sees CPI at 1.7% 2016
The OECD say that cutting rates would throw fuel on the property market and that the effects of oil prices are temporary and will recede. The only time they see rates being cut is if dairy prices remained low, the economy slowed more than expected and signs that wage growth was moderating too much. So basically if things go wonky
The OECD aren't the IMF so there's not much for the market to move on, not that they'd move a great deal on the IMF anyway
The headlines do come just ahead of the RBNZ meeting on Thursday where the bank is largely expected to keep rates unchanged at 3.50%
