RBNZ: the bottom line - ANZ

Analysts at ANZ offered their bottom line points with respect to today's RBNZ event.

Key Quotes:

"While cautious and watchful, the RBNZ was a little more upbeat. Changes in tone were of the ‘tweak’ variety, rather than anything major.

Fiscal policy will take on heightened importance. It will boost growth and inflation and influence monetary policy settings. With fiscal policy settings still uncertain, it’s a moving feast.

We are less upbeat than the RBNZ on the growth outlook, but do believe the inflation dial is pointing upwards to a greater degree. Cost push pressures are set to build. The demand side of the equation will temper some of that pressure, but not all.

That still leaves us biased towards OCR hikes in time. We favour the end of 2018 for the first move."