Markets were expecting RBNZ to signal its first rate hike
from late-2019 to early 2018 but RBNZ made no shift. In addition, RBNZ
said the recent uptick in CPI is temporary and due to petrol and food
prices. Core inflation, wage growth and house prices remain moderate.
RBNZ’s Wheeler sounded “pleased” with the decline in NZD – noted that the
5% decline in TWI since Feb is encouraging and if sustained, will help to
rebalance the growth outlook towards the tradables sector...