Halister News

(Bloomberg) -- RBNZ Gov. Wheeler may leave OCR unchanged Thursday amid risks of spreading Auckland’s housing boom beyond the city’s limits, Bloomberg strategist Michael Wilson.

• March data shows Central Otago Lakes median prices jumped 27%, Waikato/Bay of Plenty gained 22% and ex-Auckland median prices climbed 10% y/y
• Real Estate Institute of N.Z. said in its March report that fears of the Auckland market cooling off were overstated
• Despite recent gains by kiwi -- 3.7% stronger vs dollar since the OCR was lowered last month -- is little changed on a trade-weighted index basis
• RBNZ’s decision will be sandwiched between the Fed’s meeting and the BOJ’s several hours later; the N.Z. bank may wish to avoid policy changes in the midst of what may be volatile environment
• 3 of 16 economists in Bloomberg survey see RBNZ cutting rates by 25 bps to 2.00% on Thursday at 9am local
• Markets are pricing in 30% chance of a cut, based on Credit Suisse OIS index