RBNZ to leave OCR unchanged, boost inflation & GDP forecasts – GS

Analysts at Goldman Sachs provide insights on what to expect from the RBNZ monetary policy decision due for announcement on Wednesday at 2000GMT.

Key Points:

RBNZ to leave OCR unchanged

To boost inflation and GDP forecasts

Strong house price growth along with downside risks to the economy decreasing that the Reserve Bank of New Zealand  will become more hawkish as 2017 progresses

Tightening cycle to start near the end of this year, initial hike of 25bp in November