OK so working this through. Expectation for a move in OCR is remote for at least 18 months while there is expectation of 2 or 3 increases in the Fed Funds rate. NZD has risen strongly recently. Add RBNZ Governor Orr's line "we are not taking rate cuts off of the table." and maybe it is time for Kiwi to ease up a little from it's strong rally?
Official Cash Rate unchanged at 1.75 percent
Tena koutou katoa, welcome all. The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020. There are both upside and downside risks to our growth and inflation projections. As always, the timing and direction of any future OCR move remains data dependent. The pick-up in GDP growth in the June quarter was partly due to temporary factors, and business surveys continue to suggest growth will be soft in the near term. Employment is around its maximum sustainable level. However, core consumer price inflation remains below our 2 percent target mid-point, ... (full story)