Responses to the RBNZ policy guidance shift to dovish

The Reserve Bank of New Zealand statement can be found linked from here:

• RBNZ on hold, as expected

And, more info:

• NZD (and AUD) marked down on RBNZ dovish statement
• ANZ in New Zealand tips an RBNZ rate cut in November 2019 but say the risk is earlier

Comments, in summary, via Westpac:

• changed its guidance paragraph, following the lead of other central banks which had recently shifted stance in a dovish direction
• Markets interpreted the statement, with its introduction of an easing bias, as a major dovish surprise

On the NZD ahead:

• NZD/USD fell … AUD/NZD rose … We would expect these reactions to extend further over the next day or two, as markets more aggressively price in OCR cuts (currently at 100% chance by Nov 2019)