BNZ Markets Outlook RBNZ on Back Foot Already

BNZ Markets Outlook

RBNZ on Back Foot Already - Q4 manufacturing down 4.0%, despite rural boost - GDP pick downgraded to -1.1% (RBNZ -0.8%) - MPS global buffer crushed by March consensus cull - Highlighting risks to RBNZ-assumed GDP rebound - Pressure for further OCR cuts remains in force

In trying to manage OCR cut expectations at last week's Monetary Policy Statement, the Reserve Bank probably felt it had made some very low-ball assumptions around recent domestic activity and global growth expectations. However, both look to be testing the RBNZ's buffers already.

For other BNZ research, such as the Economy Watch, and the Strategist, please go to www.bnzmarkets.co.nz.

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