• There were no major surprises from the RBNZ last week, with the OCR on hold and its expectation to start lifting rates in the ‘middle of 2010’ unchanged.
• The RBNZ is looking at its medium-term inflation forecast, and after factoring the impact of the emission trading scheme and higher than usual ACC levies, it no longer feels ‘comfortable’. 
• Local data for the past week confirmed there is little urgency to unwind monetary stimulus from the household sector.  The slowing housing market is the key reason for the RBNZ’s ability to wait till the ‘middle of 2010’.

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