RBNZ to now hike rate in Q2 2020 – Deutsche Bank

Analysts at Deutsche Bank have pushed back their bets on a rate hike by the Reserve Bank of New Zealand (RBNZ) to the second quarter of 2020.

Key Quotes:

“Have now revised an RBNZ rate hike in Q2 of 2020 vs. a forecast of a rate hike in H2 of 2019.

The employment report earlier today, it'll have an impact on the RBNZ.

The delay in a rate hike is cited due to the softer global backdrop.

Gives RBNZ little scope to hike this year.

Expect RBNZ likely to push its implied OCR hike projection into 2021.

Does not see RBNZ to cut rates due to core inflation move higher.”