The RBNZ is (basically unanimously) expected to hike its cash rate next week. Inflation is going gangbusters in NZ and the Bank will respond.
I'll have more on this early next week but in a nutshell, buckle up for a hike next week.
The meeting after next week is another 8 weeks away, which has led to speculation of a 50bp hike next week.
ANZ comments:
- We expect the RBNZ to raise the OCR by 25bp to 1% next Wednesday.
- The market is placing about 30% odds on a 50-pointer, which seems fair.
