RBNZ: no policy changes expected - Nomura

Analysts at Nomura expect no policy changes from the Reserve Bank of New Zealand (RBNZ). 

Key Quotes:

"However, we do expect it to reaffirm its cautious stance. We see a possibility the Bank may express some more explicit dovish leanings because of the subdued inflation backdrop and elevated NZD. 

We continue to think that too much optimism is priced into the NZD near current levels. And given the bullish skew in NZD positioning, the risk of a retracement has risen. Tactically, we recommend selling NZD against a basket of other currencies (CAD (20%), EUR (30%), USD (30%) and AUD (20%))."