I posted two Reserve Bank of New Zealand previews already, this via NAB: RBNZ Oct. monetary policy decision coming up - preview
and this via Westpac: RBNZ Oct. monetary policy meeting coming up - preview
- Announcement due at 9am New Zealand time on Thursday (This is 2000 GMT on 8 November 2017)
- Accompanied by the bank's its latest Monetary Policy Statement
- News conference to follow
This is via ASB (in brief, bolding mine):
We expect the Reserve Bank of New Zealand (RBNZ) to hold the OCR at record low of 1.75% on Thursday's Monetary Policy Statement (MPS), the 7th consecutive on-hold decision.
- A considerable amount of water has flowed under the bridge since the August MPS and the RBNZ is facing an outlook of many moving parts.
- Uncertainties over the policy outlook make November an awkward time to deliver a set of forecasts.
- The global outlook is strengthening, but as the RBNZ alluded to in September the domestic growth outlook has moderated somewhat.
- Conversely, CPI inflation was higher than the RBNZ expected in Q3 and the NZD is currently 6% lower than what the RBNZ had assumed.
- There has been the change in government, but insufficient detail has emerged from which the RBNZ can assess the policy implications.
The monetary policy goal posts also look like they will be shifting, with a monetary policy review pending as are potential changes to the RBNZ Act and the Policy Targets Agreement. In such an environment it would be prudent for the RBNZ to maintain a low profile and defer signalling any changes in view until further information emerges
