Bank of New Zealand (the commercial bank, not to be confused with the central bank) were expected a rate hike from the Reserve Bank of New Zealand (the central bank) in February 2018
- BNZ revise their call now to mid 2018
More:
RBNZ on hold for "considerable period"
- As BOC, BOE and Fed show signs of aggression
- We formally relinquish our Feb rate hike view
- As short term inflation indicators weaken
- Nonetheless, we remain mindful that capacity pressures continue to build
With some trepidation, we are now formally pushing back our expectation of a first RBNZ rate hike to mid-2018 from Q1 2018. There remains huge uncertainty around the timing of the move and we are certainly not ruling out a February rate hike. However, we now think looking for a May (or August) move is a better reflection of our central view of the RBNZ's reaction function with equivalent risks of an earlier or later move. Our view remains significantly more aggressive than the central bank's and modestly more so than market.
