RBNZ lifts rates for first time in three years

So the OCR went up 25 basis points.  Cool, that is nice.

It was almost entirely in line with expectations so there isn’t much to say, except:

1. They more explicitly discussed Eric’s concerns regarding the impact of ETS increases into inflation expectations.
2. They put table 5.2 in which talked about “who got what” from tax cuts.  OMG, seriously – this table was unnecessary.
3. The continued to state that there is no real reason for our TOT to hold up – so a lot of the issues I’ve viewed as “structural” (rising commodity demand from China’s middle classes, Biofuels, falling subsidies on agriculture around the world) are being viewed as temporary by the Bank methinks.  This is why I will always disagree with their medium term forecasts …