RBNZ to keep the OCR at 1% – TD Securities

Analysts at TD Securities are expecting the RBNZ to keep the OCR at 1% at tomorrow's meeting.

Key Quotes

“With the Bank cutting the OCR 50bps last month, more than what the market anticipated and exceeding the Bank's own 25bps Aug MPS forecast, Q2 GDP in line with RBNZ expectations and the NZ TWI more than 4% below its Aug MPS projections, the Bank can afford to 'wait' and 'watch' developments...for now.”

“However, the Bank's 2020 mid-year GDP forecasts for ~3%/yr growth appear ambitious. And with the global outlook remaining cloudy, the Bank is likely to reaffirm downside risks to its forecasts. Accordingly we retain our call for the RBNZ to cut the cash rate to 0.75% in Nov.”