RBNZ: does not see OCR increasing - UOB

Analysts at UOB Group explained that RBNZ Governor Wheeler said that the risk is house price inflation could pick up again, but he is pleased to see deceleration that has occurred. 

Key Quotes:

"He pointed that the TWI rise, weak June CPI and weaker GDP in last two-quarters, lower house price inflation are downward pressures on OCR and for the foreseeable future, he does not see OCR increasing.

He reiterated that lower exchange rate would help to reduce tradables inflation and help get better balance to growth dynamics in the economy . . . "