RBNZ: OCR likely to remain unchanged - TDS

In opinion of analysts at TD Securities, RBNZ’s OCR is expected to remain unchanged in its forthcoming policy setting meeting tomorrow as no-one expects changes for some time.

Key Quotes

“There is only one official rate cut prediction, OIS is 80% priced for a cut by year end.”

“We expect Gov Orr to out-dove the RBA with GDP/CPI downgrades and a rehash of the -100bp scenario that shocked last Aug.”

“The OCR profile could be flat at 1.75% (repeat of March 2015) from the Nov view of +25bp by end-2020.”