New Zealand price and wage inflation remaining well contained - Westpac

In respect to the New Zealand economy, analysts at Westpac explained that even with the economy expanding at a brisk pace in recent years, they have not seen signs that the economy is overheating, with both domestic price inflation and wage inflation remaining well contained. 

Key Quotes:

"In addition, the momentum in economic activity has started to fade, with GDP growth set to slow further over 2018. 

To ensure inflation remains close to 2% against this backdrop, interest rates will need to remain low for some time. 

We continued to expect that the Reserve Bank will delay hiking the Official Cash Rate until late 2019 (in contrast to financial markets pricing for rate hikes from early 2019)."