RBNZ at odds with market economists over inflation outlook

Thu, 11 May 2017

By Paul McBeth May 11 (BusinessDesk) - The Reserve Bank isn't convinced inflation pressures are building to such an extent that it needed to tinker with its flat interest rate track, putting it at odds with market economists. Governor Graeme Wheeler kept the official cash rate at 1.75 percent, as expected, but surprised some in the market by affirming the bank's neutral bias with the benchmark rate unchanged until September 2019 when it rises to 1.9 percent. A rate hike isn't fully priced in until March 2020 when the OCR is seen at 2 per...

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