JP Morgan in response to the Reserve Bank of New Zealand decision and statement earlier today
They say statement today hasn't changed much and there are no new downside risks presented
- "A weakening in demand, together with a slump in inflation expectations and wage measures would be contrary to the economy's momentum
- Neither (let alone both)are forecast by us, or the RBNZ, as likely to happen
- Without evidence of the economy's very strong activity impulse having changed, we see downside risks as just that - risks -and forecast the RBNZ to stay on hold this year"
