Unjustifiably or understandably, it’s a matter of perspective

The RBNZ’s concern about the level of the NZD has escalated to the point where a decline is “needed”.

However, the level of the NZD is understandable given the current fundamentals which are supporting it.

Nevertheless, the high NZD makes the RBNZ’s job harder. But we don’t expect an OCR cut just yet at this week’s OCR Review.