Kiwi rates outlook 1-3 months: long end to still follow US? - Westpac

Analysts at Westpac explained their outlook for NZ swap yields 1-3 month.

• RBNZ's Assistant Gov Spencer: We are expecting to see lots of volatility in inflation numbers

Key Quotes:

"The RBNZ said it has ended its easing cycle and will remain on hold for some time. That will anchor the short end, although markets will not abandon their expectations for tightening as early as 2018 which means occasional spikes in the 2yr will be likely. The long end will continue to follow mainly US yields, which we expect to rise. That means the curve steepening trend should continue."