Wednesday, 18th July, 2018
In NZ this week attention will be on Tuesday’s Q2 CPI print. The sustained lift in global oil prices and recent falls in the NZD have boosted NZ’s near-term inflation outlook substantially. However, we do not expect the RBNZ to change its OCR outlook on the back of Tuesday’s release. In our key insights this week we explore the likely impacts of the lifts to the minimum wage and the Fair Pay Agreements. Offshore, Australian labour market data and the release of the US Fed Beige Book are the key international events. Outside of this, the ongoing focus on trade developments is likely to remain at the fore.