Thursday, 21st February, 2019
The RBNZ was on hold last week as expected and pushed out the timing of its first OCR hike by around six months. However, the RBNZ’s statement wasn’t as cautious as financial markets had expected. This apparent lack of caution sent NZ interest rates higher following the announcement, taking the NZD with it. On the currency, we have updated our suite of currency forecasts and discuss them on Page 2. On the whole, we expect the NZD to be stronger against all major crosses than we had forecast previously.