No time for complacency

	The RBNZ is widely expected to deliver a second consecutive increase in the OCR on Thursday, lifting it 25 basis points to 3%.  The tone of the accompanying statement will then be dissected in hope of clues to the future policy outlook.
	Reflecting ongoing uncertainty offshore, particularly in Europe, the RBNZ is likely to repeat that future monetary policy moves are conditional on “economic and financial market developments”.
	The EU Bank tests results were released over the weekend, although the high pass rate and low estimated capital requirements are likely to leave the market doubting the robustness of the exercise.

Read the full PDF report.

Other sites of interest: www.asbsecurities.co.nz  www.asb.co.nz  www.commbank.com.au

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Report prepared by:
Jane Turner
ASB Economist
Phone: +64 9 374 8185
Fax: +64 9 302 0992