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☆ New Zealand economy expands faster than expected
▼ + stars: | 2023-09-20 | by ( Lucy Craymer | ) www.reuters.com time to read: +3 min

Shoppers walk in front of a retail shop displaying a sale sign in central Wellington, New Zealand, July 3, 2017. Annual growth increased to 1.8%, Statistics New Zealand data showed, above expectations of 1.2%. "It's a victory for the New Zealand economy and for the people who work hard every single day to deliver high quality jobs," Finance Minister Grant Robertson told reporters. The handling of the economy has been a central theme in this year's election with the opposition criticising the government's role in record high inflation and the slowing economy. The Reserve Bank of New Zealand (RBNZ) has been forecasting the economy would slip into recession in the second half of 2023.

Persons: David Gray, Gabrielle, Grant Robertson, Lucy Craymer, Sonali Paul Organizations: REUTERS, Statistics, New Zealand, U.S . Federal, Labour, New, Finance, ASB, Reserve Bank of New Zealand, Thomson Locations: Wellington , New Zealand, WELLINGTON, Statistics New Zealand, Zealand, New Zealand

☆ Crunch time after string of aggressive central bank rate hikes
▼ + stars: | 2023-09-14 | by ( ) www.reuters.com time to read: +5 min

Major central banks have confounded economists with a string of interest rate rises that, so far, have moderated inflation without causing global recession. So far, nine developed economies have raised rates by a combined 3,915 bps in this cycle. Reuters Graphics2) NEW ZEALANDThe Reserve Bank of New Zealand lifted its cash rate to a 14-year high of 5.5% in May and has kept it there since. Reuters Graphics7) AUSTRALIAThe Reserve Bank of Australia kept rates steady at 4.1% for a third consecutive meeting in September, the last under former Governor Philip Lowe. Reuters Graphics10) JAPANThe Bank of Japan, the world's most dovish major central bank, meets next week.

Persons: BoE, Macklem, Philip Lowe, Lowe's, Michele Bullock, Naomi Rovnick, Harry Robertson, Samuel Indyk, Nell Mackenzie, Alun John, Yoruk Bahceli, Chiara Elisei, Vincent Flasseur, Sumanta Sen, Pasit, Dhara Ranasinghe, Sharon Singleton Organizations: European Central Bank, U.S . Federal Reserve, UNITED, Reuters, Federal Reserve, Reserve Bank of, BRITAIN, of England, CANADA Bank of Canada, Bank of Canada, ECB, Norges Bank, SWEDEN Traders, Swiss, Bank of Japan, Thomson Locations: U.S, Japan, Reserve Bank of New Zealand, NORWAY, Reserve Bank of Australia, SWEDEN, Swedish, SWITZERLAND Swiss, JAPAN

☆ Policymakers see darker days ahead in China as growth sputters
▼ + stars: | 2023-09-07 | by ( Divya Chowdhury | ) www.reuters.com time to read: +3 min

MUMBAI, Sept 6 (Reuters) - Policymakers expect persistently slower growth in China, perhaps even more sluggish than current consensus estimates, seeing its transition from an infrastructure- and investment-led economy to becoming consumption-driven as "difficult". "The inflation rate in China is around 0% - that means distortion of domestic demand and domestic supply," he said. This follows economic growth in 2022 recorded at one of its worst levels in nearly half a century. The Croatian central bank chief sees narrowing room for expansionary policies in China, adding, "We have to be careful." The RBNZ has already factored in "a pretty subdued period" for commodity prices within their projections, before they see them beginning to rise again, Hawkesby said.

Persons: Takahide Kiuchi, Goushi Kataoka, Boris Vujcic, Robert Holzmann, Christian Hawkesby, Hawkesby, Divya Chowdhury, Savio Shetty, Lisa Mattackal, Mehnaz Yasmin, Mark Heinrich Our Organizations: Former Bank of Japan, Reuters Global Markets, European Central Bank, ECB, Reserve Bank of New Zealand, Thomson Locations: MUMBAI, China, Europe, Croatian, Austrian, United States, Mumbai, Bengaluru

☆ New Zealand house prices to rise again on supply shortage, rate cut hopes
▼ + stars: | 2023-08-29 | by ( Anant Chandak | ) www.reuters.com time to read: +3 min

Summary poll dataBENGALURU, Aug 30 (Reuters) - New Zealand house prices are forecast to rise again next year due to an ongoing supply shortage and expectations for interest rate cuts, according to a Reuters poll of property market analysts. That is short of a roughly 20% correction most property analysts predicted in May following a pandemic-era boom that boosted prices by more than 40%. Prices have started to rise again on returning demand meeting limited available supply. New Zealand house prices were expected to decline 4.8% this year, the latest Reuters poll of 11 property market analysts taken Aug. 14-28 showed. Average property prices were then expected to rise 5.0% and 6.0% in 2024 and 2025, respectively, an upgrade from 3.4% and 5.0% in the previous poll.

Persons: Miles Workman, homebuyers, Anant Chandak, Susobhan Sarkar, Ross Finley, Matthew Lewis Organizations: Reserve Bank of New Zealand, ANZ, Monetary Fund, Thomson Locations: New Zealand, Bengaluru

☆ New Zealand's opposition vows to shake up central bank, as it leads in polls
▼ + stars: | 2023-08-28 | by ( ) www.cnbc.com time to read: +1 min

The Reserve Bank of New Zealand (RBNZ) building in Wellington, New Zealand, on Wednesday, Feb. 22, 2023. New Zealand's central bank could have its policy goals narrowed significantly and be subject to an external review if the center-right National Party opposition wins election this year, as political scrutiny of the bank intensifies. As the country heads to an election in October, opinion polls show the opposition leading the center-left Labor government, which has held office since 2017. National's platform includes returning the Reserve Bank of New Zealand's, or RBNZ, goal to a single target of keeping inflation between 1% and 3% and jettisoning recent additions of an employment mandate. "New Zealanders need confidence that the Reserve Bank will not deprioritize inflation in the pursuit of other goals," National finance spokesperson Nicola Willis said in an emailed response to questions from Reuters.

Persons: Nicola Willis Organizations: Bank of New Zealand, National Party, Labor, Reserve Bank of New, Reserve Bank, National, Reuters Locations: Wellington , New Zealand, New

☆ NZ central bank sees cash rate on hold until 2025
▼ + stars: | 2023-08-16 | by ( Lucy Craymer | ) www.reuters.com time to read: +2 min

Summary Rates on hold for longer to meet inflation targetNZ dollar jumps 0.2%WELLINGTON, Aug 16 (Reuters) - New Zealand's central bank held the cash rate steady at 5.5% on Wednesday but slightly pushed out when it expects to start cutting the cash rate to 2025, which provided some support for the New Zealand dollar. The decision was in line with expectations from 29 economists in a Reuters poll all forecasting the Reserve Bank of New Zealand (RBNZ) would leave the cash rate at a 14-year high for the second consecutive meeting. "The committee agreed that the OCR (official cash rate) needs to stay at restrictive levels for the foreseeable future to ensure annual consumer price inflation returns to the 1% to 3% target range," the statement said. It said conditional on its central economic outlook, the cash rate would need to remain at around its current level for slightly longer than was assumed in its May statement to meet its inflation and employment objectives. The rate hikes have sharply slowed the economy, now in a technical recession following two quarters of negative growth.

Persons: Lucy Craymer, Sonali Paul Organizations: WELLINGTON, New Zealand, Reserve Bank of New Zealand, New, Thomson Locations: New Zealand

☆ Reserve Bank of New Zealand: stress test shows life insurers can withstand shocks
▼ + stars: | 2023-08-07 | by ( Lucy Craymer | ) www.reuters.com time to read: +1 min

Two people walk towards the entrance of the Reserve Bank of New Zealand located in the New Zealand capital city of Wellington, March 22, 2016. REUTERS/Rebecca Howard/File PhotoWELLINGTON, Aug 8 (Reuters) - Reserve Bank of New Zealand said on Tuesday that its first life insurance industry stress test showed large insurers are well placed to withstand severe economic and insurance shocks, while continuing to pay out on policy claims. He added that stress tests play an important role in helping build understanding of how particular risks may impact financial stability as well as building capability across industry to manage these risks. The RBNZ will now undertake stress tests on the life insurance industry annually. Reporting by Lucy Craymer Editing by Chris Reese and David GregorioOur Standards: The Thomson Reuters Trust Principles.

Persons: Rebecca Howard, ”, Christian Hawkesby, Lucy Craymer, Chris Reese, David Gregorio Our Organizations: Reserve Bank of New, REUTERS, Thomson Locations: Reserve Bank of New Zealand, New Zealand, Wellington

☆ New Zealand’s jobless rate rises to 3.6% in second quarter
▼ + stars: | 2023-08-01 | by ( Lucy Craymer | ) www.reuters.com time to read: +2 min

WELLINGTON, Aug 2 (Reuters) - New Zealand’s jobless rate rose slightly in the second quarter from the previous quarter as more people entered the work force and wage inflation eased off three-decade highs. The unemployment rate increased to 3.6% in the June quarter from 3.4% in the March quarter and was slightly higher than a forecast 3.5% by economists, Statistics New Zealand data showed on Wednesday. Statistics New Zealand said the labour force participation rate at 72.4% and the employment rate at 69.8% were both the highest rates recorded since the survey began. Wage growth started to ease in the quarter although it remains historically high. Reporting by Lucy Craymer; Editing by Sandra Maler and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

Persons: Lucy Craymer, Sandra Maler, Sonali Paul Organizations: WELLINGTON, Statistics, Reserve Bank of New Zealand, Thomson Locations: Statistics New Zealand, Zealand, New Zealand

☆ Big central banks hike again with end in sight
▼ + stars: | 2023-07-27 | by ( ) www.reuters.com time to read: +5 min

To date, nine developed economies have raised rates by a combined 3,840 basis points (bps) in this cycle. Expectations for a big rate increase have eased after latest data showed inflation fell to a softer-than-expected 7.9% in June. Markets think there's a 50% chance of a 25 bps increase in September, and an equal chance of a hold. Reuters Graphics10) JAPANThe Bank of Japan, the world's most dovish major central bank, concludes a two-day meeting on Friday. The central bank is leaning towards keeping the dial set to dovish, Reuters reported last week.

Persons: Jerome Powell, BoE, Philip Lowe's, Michele Bullock, Riksbank, Kazuo Ueda, Nell Mackenzie, Alun John, Naomi Rovnick, Harry Robertson, Chiara Elisei, Vincent Flasseur, Sumanta Sen, Pasit, Sharon Singleton Organizations: UNITED, Federal Reserve, ZEALAND, Reserve Bank of New, Reuters, BRITAIN, Bank of England, Bank of Canada, BoC, European Central Bank, Norges Bank, bps, Swiss National Bank, Markets, Bank of Japan, Thomson Locations: Japan, Reserve Bank of New Zealand, AUSTRALIA, NORWAY, Norway, SWEDEN, SWITZERLAND, JAPAN

☆ Dollar slides ahead of U.S. inflation data, sterling hits 15-month peak
▼ + stars: | 2023-07-12 | by ( ) www.cnbc.com time to read: +3 min

An old British £1 note is pictured with a one Dollar bill note on January 07, 2023 in Bath, England. U.S. inflation data is due later on Wednesday, with expectations core consumer prices rose 5% on an annual basis in June. The figures should also provide further clarity on the Federal Reserve's progress in its fight against inflation. "We're already seeing markets move in anticipation of a softer U.S. inflation report," said Matt Simpson, senior market analyst at City Index. "Speculation of a possible tweak could allow the yen some support ahead of the BOJ meeting this month."

Persons: BoE, Matt Simpson, Simpson, YCC, Jane Foley, that's, Susan Kilsby Organizations: Bank of England, U.S ., Fed, Bank of Japan, Rabobank, New Zealand, Reserve Bank of New, ANZ Locations: Bath, England, U.S, Tuesday's, Asia, Reserve Bank of New Zealand

☆ Dollar slumps ahead of US inflation data, sterling rises
▼ + stars: | 2023-07-12 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

"The (RBNZ) statement and minutes retained their dovish undertone overall, but they can't not warn that inflation is still 'too high' as they need to contain inflation expectations," said Matt Simpson, senior market analyst at City Index. The broader market focus remained on U.S. inflation data due later on Wednesday, with expectations for core consumer prices to have risen 5% on an annual basis in June. "We're already seeing markets move in anticipation of a softer U.S. inflation report," said City Index's Simpson. U.S. Treasury yields came under pressure on Wednesday, with the two-year yield and benchmark 10-year yield settling below 5% and 4%, respectively. "Speculation of a possible tweak could allow the (yen) some support ahead of the BOJ meeting this month."

Persons: BoE, Matt Simpson, we've, Index's Simpson, Sterling, YCC, Jane Foley, Rae Wee, Jamie Freed, Edmund Klamann Organizations: Bank of England, New Zealand, Reserve Bank of New Zealand, U.S ., Fed, BoE . U.S, Treasury, Bank of Japan, Rabobank, Thomson Locations: SINGAPORE, U.S, Asia, BoE .

July 12 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Figures on Tuesday showed surprisingly strong bank lending in June, helped by central bank efforts to support an economy that has struggled to rebound from pandemic restrictions as expected. On a macro level, the U.S. dollar's weakness continues to help fuel the optimism across Asian markets. New Zealand's central bank is expected to keep its cash rate - already at a 14-year high and the highest in the developed world - at 5.50% on Wednesday and leave it there for the rest of the year. But with inflation running well above target, rates markets are leaning toward one more 25 basis point hike by year end.

Persons: Jamie McGeever, Goldman Sachs, Foxconn, Deepa Babington Organizations: Reserve Bank of New, Global, Thomson, Reuters Locations: Asia, U.S, China, Japan, New, Zealand, India

☆ New Zealand central bank to hold rates in July and for rest of 2023: Reuters poll
▼ + stars: | 2023-07-07 | by ( Devayani Sathyan | ) www.reuters.com time to read: +3 min

The economy is forecast to weaken further as the impact of 525 basis points of RBNZ rate rises becomes more visible. All 25 economists polled by Reuters July 3-6 expected the RBNZ to hold the official cash rate (OCR) (NZINTR=ECI) at 5.50% on July 12. It would be the first time the RBNZ has not raised rates at a policy meeting in nearly two years. The central bank raised rates in May but signalled it was done tightening. Over 90% of economists pollled, 23 of 24, did not predict any changes to rates this quarter.

Persons: Jarrod Kerr, pollled, Nick Tuffley, Devayani Sathyan, Susobhan Sarkar, Hari Kishan, Ross Finley, Kim Coghill Organizations: Reserve Bank of New Zealand, Reuters, ANZ, ASB, Bank of New, Kiwibank, Westpac, Thomson Locations: BENGALURU, Bank of New Zealand

☆ New Zealand central bank to hold rates in July and for rest of 2023, Reuters poll shows
▼ + stars: | 2023-07-06 | by ( Devayani Sathyan | ) www.reuters.com time to read: +3 min

The economy is forecast to weaken further as the impact of 525 basis points of RBNZ rate rises becomes more visible. All 25 economists polled by Reuters July 3-6 expected the RBNZ to hold the official cash rate (OCR) (NZINTR=ECI) at 5.50% on July 12. It would be the first time the RBNZ has not raised rates at a policy meeting in nearly two years. The central bank raised rates last month but signalled it was done tightening. Over 90% of economists pollled, 23 of 24, did not predict any changes to rates this quarter.

☆ Major central banks not done with rate hikes just yet
▼ + stars: | 2023-06-15 | by ( ) www.reuters.com time to read: +6 min

[1/2] A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. Fed policymakers paused on its rate hikes since March 2022, and kept the federal funds target rate unchanged at 5.25%, its highest level since August 2007. Reuters Graphics5) AUSTRALIAAustralia's central bank raised its benchmark rate by a quarter-point on June 6 to an 11-year high of 4.1%. It expects inflation to stay above its 2% target through 2025 and hinted at more rate hikes ahead. Reuters Graphics10) JAPANThe Bank of Japan remains the world's most dovish major central bank under new Governor Kazuo Ueda.

Persons: Heiko Becker, Jerome Powell, BoE, Christine Lagarde, Thomas Jordan, Kazuo Ueda, Samuel Indyk, Nell Mackenzie, Alun John, Naomi Rovnick, Harry Robertson, Chiara Elisei, Vincent Flasseur, Sumanta Sen, Pasit, Dhara Ransinghe, Jonathan Oatis Organizations: European Central Bank, REUTERS, Heiko Becker LONDON, U.S . Federal Reserve, Bank of England, Reuters, Reserve Bank of New, UNITED, Fed, Bank of Canada, BRITAIN, Bank of, ECB, Norges Bank, Reuters Graphics Reuters, Swiss National Bank, Bank of Japan, Thomson Locations: Frankfurt, Germany, Canada, Japan, dovish, Reserve Bank of New Zealand, U.S, Bank of England, AUSTRALIA, SWEDEN, NORWAY, SWITZERLAND, JAPAN

☆ New Zealand's economy likely in recession as rate hikes take hold
▼ + stars: | 2023-06-13 | by ( Lucy Craymer | ) www.reuters.com time to read: +2 min

WELLINGTON, June 13 (Reuters) - The New Zealand central bank’s aggressive hiking of the cash rate likely pushed the country into a technical recession in the first quarter, a Reuters poll found, giving traction to the idea the cash rate may have peaked. This would mean the country moved into a technical recession - two consecutive quarters of negative growth - after the economy contracted by 0.6% in the fourth quarter. New Zealand's central bank last month signalled it was done tightening after raising rates by 25 basis points to the highest in more than 14-years at 5.5%, ending its most aggressive hiking cycle since 1999. Yet a handful of economists think the boost to the economy from historically high migration and the return of tourism might force the central bank to do more. He said he expects the next cash rate move to be a cut.

Persons: ”, Jarrod Kerr, Cyclone Gabrielle, Brad Olsen, Lucy Craymer, Lincoln Organizations: Gross, Reserve Bank of New, “, Treasury, Reserve Bank, Zealand, Thomson Locations: Zealand, Auckland

☆ Dollar steady, with Fed pause eyed in busy c.bank week
▼ + stars: | 2023-06-12 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

Policy meetings of the Fed, the European Central Bank (ECB) and the Bank of Japan (BOJ) will set the tone for the week, as markets seek clues from policymakers on the future path of interest rates. The U.S. dollar index clocked a loss of nearly 0.5% last week, its worst weekly drop since mid-April, and was last marginally higher at 103.58. The euro slipped 0.02% to $1.0744 in early Asia trade, after having risen 0.4% last week, its first weekly gain in roughly a month. "Central banks have raised rates aggressively over the past 12-15 months and given the lagged effects with which monetary policy affects demand, are central banks teeing up for a pause, following the RBNZ's example?" "We change our BOJ call to no YCC revision at this week's meeting," said Societe Generale's Jin Kenzaki, referring to the central bank's controversial yield curve control policy.

Persons: Alvin Tan, Jin Kenzaki, Rae Wee, Muralikumar Organizations: European Central Bank, Bank of Japan, Asia FX, RBC Capital Markets, Money, U.S, Reuters, ECB, ANZ, Reserve Bank of New, Thomson Locations: SINGAPORE, Asia, Australia, Reserve Bank of New Zealand

☆ Dollar steady, with Fed pause eyed in busy central bank week
▼ + stars: | 2023-06-12 | by ( ) www.cnbc.com time to read: +3 min

Policy meetings of the Fed, the European Central Bank and the Bank of Japan will set the tone for the week, as markets seek clues from policymakers on the future path of interest rates. The U.S. dollar index clocked a loss of nearly 0.5% last week, its worst weekly drop since mid-April, and was last marginally higher at 103.58. "Outside of the decisions that the central banks make at this meeting, what will be of particular interest is their forward guidance," economists at ANZ wrote in a note. "Central banks have raised rates aggressively over the past 12-15 months and given the lagged effects with which monetary policy affects demand, are central banks teeing up for a pause, following the RBNZ's example?" "We change our BOJ call to no YCC revision at this week's meeting," said Societe Generale's Jin Kenzaki, referring to the central bank's controversial yield curve control policy.

Persons: Alvin Tan, Jin Kenzaki Organizations: European Central Bank, Bank of Japan, Asia FX, RBC Capital Markets, Money, U.S, Reuters, ECB, ANZ, Reserve Bank of New Locations: Asia, Australia, Reserve Bank of New Zealand

☆ NZ central bank to hike by 25 bps, risk grows of higher peak for rates
▼ + stars: | 2023-05-22 | by ( Lucy Craymer | ) www.reuters.com time to read: +2 min

Yet, while back in February the RBNZ forecast the cash rate would peak at 5.5%, a growing minority of economists expect a further tightening is possible in July. Four economists in a Reuters poll of 21 economists now expect the cash rate to reach 5.75 or higher. Fourteen expect rates to hold at 5.50% next quarter. After the April surprise, markets remain wary of another outsized 50-basis-point rate hike this week. The money market is now pricing 39 basis points of hikes, up from 20 basis points last week.

☆ New Zealand set to reveal bigger deficit in 'no frills' 2023-24 budget
▼ + stars: | 2023-05-16 | by ( Lucy Craymer | ) www.reuters.com time to read: +2 min

WELLINGTON, May 16 (Reuters) - New Zealand Labour government is set to reveal a worse budget bottom line and economic outlook on Thursday as it delivers what it calls a “no frills” 2023-24 budget to avoid fuelling inflation. Since coming into power, Prime Minister Chris Hipkins has cut costly programmes and reiterated the government’s plans to return to “bread and butter issues”. They’ll see that’s what we’ve done in the budget,” Hipkins said at his weekly Monday press conference. The country was hit by two significant weather events at the start of the year that caused an estimated NZ$9 billion and NZ$14.5 billion in damage. “The Budget packages will likely be more targeted, appearing more fiscally responsible and prudent,” Smith added.

☆ RBNZ proposes collecting more financial entity data on cyber incidents
▼ + stars: | 2023-05-08 | by ( ) www.reuters.com time to read: +1 min

WELLINGTON, May 8 (Reuters) - The Reserve Bank of New Zealand is proposing collecting financial entity data on cyber incidents to better understand cyber risks and resilience in the financial sector, it said in a statement on Monday. The central bank said it is proposing introducing mandatory reporting of material cyber incidents with 72 hours of detection, reporting of all cyber incidents periodically even if they are not material, and a regular survey on cyber resilience. The central bank is currently seeking feedback on the proposal before deciding whether to implement the new rules. RBNZ Director of Prudential Policy Kate Le Quesne said collection of this information will improve the bank's understanding of cyber resilience in the financial sector. Reporting by Lucy Craymer; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

April 6 (Reuters) - There will be no Asia Morning Bid on Friday, April 7. Chinese services PMI and Australian trade figures are also on the docket Thursday, while remarks from Reserve Bank of Australia governor Philip Lowe on could shed further light on the RBA's outlook following Tuesday's policy decision. chartIt's a difficult one to call, and after the Reserve Bank of New Zealand's hawkish surprise on Wednesday, investors would do well to be humble in their predictions. Wall Street is finally buckling, rates markets are now gunning for almost 100 basis points of Fed rate cuts this year and the dollar is sagging. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

The underlying trend though for the dollar remained tilted to the downside and Wednesday's U.S. private sector jobs numbers affirmed that. The ADP National Employment report showed U.S. private employers hired far fewer workers than expected in March, suggesting a cooling labor market. Private employment increased by 145,000 jobs last month. Economists polled by Reuters had forecast private employment increasing 200,000. Another report on Wednesday also indicated continued economic weakness, this time in the services sector.

☆ Stocks meander as US jobs dry up, kiwi jumps on RBNZ surprise
▼ + stars: | 2023-04-05 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

Futures indicated European markets were set for a broadly lower open, with Eurostoxx 50 futures down 0.26%, German DAX futures down 0.12%. Two-year treasury yields , which closely track short-term rate expectations, dived almost 15 basis points and the dollar tracked the move to hit two-month troughs. Elsewhere investors see a few more rate hikes in store in Europe, where German exports have turned surprisingly strong. The euro flat at $1.0952, just shy of a two-month high it hit overnight on the dollar at $1.0973. Commodity markets are settling after Monday's surge in oil prices on news of surprise OPEC+ production cuts.

☆ RBNZ stuns market with bigger rate rise, more tightening seen
▼ + stars: | 2023-04-05 | by ( Lucy Craymer | ) www.reuters.com time to read: +3 min

The central bank's hawkish stance saw a number of economists revise their expectations, predicting it would increase the official cash rate (NZINTR=ECI) (OCR) to a peak of 5.5%. The Reserve Bank of New Zealand said the committee needed to increase the cash rate if it is to return inflation to its target of 1%-3%. Wednesday's decision comes in sharp contrast with the Reserve Bank of Australia's decision to hold the cash rate steady. Two-year swaps jumped 15 bps to 5.11%, still well below the March peak of 5.53%, while the 90-day bank bill rate implied the official cash rate would peak at 5.5%. Kiwibank along with ANZ, Bank of New Zealand, ASB Bank and Capital Economics now expect the cash rate to peak at 5.5%.

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