The RBNZ surprised the market again today, this time by leaving the OCR unchanged at 1.00% despite a majority of market participants expecting a cut. This led to a sharp move higher in the NZ Dollar and interest rates. The no-change decision left us somewhat perplexed, although we continue to believe downside risks to the New Zealand economy will see the RBNZ retain an easing bias for some time yet.

In this short video I discuss the key points from today’s announcement, and our thoughts on the next move for the RBNZ.