The RBNZ is likely to hike rates tomorrow, according to a group that shadows the Reserve Bank of New Zealand. The majority of the 9-person panel at the NZ Institute of Economic Research sees a hike tomorrow. Economists are even more confident, with 13 of 15 surveyed by Bloomberg expecting a hike. The OIS market is pricing a 95% chance of a hike.
For markets tomorrow the bigger question will be the signal. About 75 basis points of additional hikes are priced in over the next year and the market will be looking for signals from Stevens.
