Inflation rebound unlikely, OCR heading for 2%, says Westpac

Tue, 03 Nov 2015

By Sophie Boot Nov. 3 (BusinessDesk) - Inflation is likely to undershoot the Reserve Bank's forecast in 2016 because of an unexpectedly strong kiwi dollar, adding to the case for deeper interest rate cuts, Westpac Banking Corp economists say. The trade-weighted index was recently at 72.92, more than 7 percent above the average 67.9 level the central bank projected for the fourth quarter in its September monetary policy statement. While the TWI sank as low as 68.18 in late September, it has since rebounded to a five-month high, instead of...

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