Reserve Bank of New Zealand announcement, along with the Monetary Policy Statement (MPS) is here
A rapid response from Westpac (bolding mine):
OCR on hold at 1.75%, as was widely expected
Compared to market expectations, the statement was less dovish - there were no changes to either the OCR forecast or the guidance language
The OCR forecast, which had previously shown a rise in the OCR to 2.0% by Q1 2020, was unchanged. Markets had expected that uptick to be removed.
The key policy guidance paragraph was unchanged: "Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly."
The NZD exchange rate narrative was strengthened only slightly: "The trade-weighted exchange rate has increased since the May Statement, partly in response to a weaker US dollar. A lower New Zealand dollar is needed to increase tradables inflation and help deliver more balanced growth."
That compares with June's: "The trade-weighted exchange rate has increased by around 3 percent since May, partly in response to higher export prices. A lower New Zealand dollar would help rebalance the growth outlook towards the tradables sector."
Markets have initially deemed the announcement slightly more hawkish than expected.
