Wednesday, 15th August, 2018
In last week’s August Monetary Policy Statement (MPS), the RBNZ surprised ourselves and the market by delaying its forecast rate hikes by 12 months to late 2020/early 2021. The NZD and NZ interest rates have both weakened. The Chart of the Week highlights the extent to which market pricing for OCR hikes/cuts has moved since last Thursday’s release. We also discuss the August MPS in more detail on Page 2. Offshore, the data calendar is light this week. Contagion concerns stemming from the recent sharp fall in the value of the Turkish Lira and heightened trade tensions between the US, China and Eurozone will also be front of mind this week.