Analysts at ASB in New Zealand trim expectations for Reserve Bank of New Zealand rate hike

New Zealand economic growth data just came in much worse than expected:

• New Zealand GDP for Q4 2022 (sa) -0.6% q/q (expected -0.2%)

Kiwi $ saw another dip on the data (its clawing some back now)

• NZD marked lower on the worse than expected economic contraction data from New Zealand

Analysts at ASB have now forecast a 25bp rate hike from the Reserve Bank of New Zealand at the next meeting, April 5th. While 50bp wasn't quite the consensus for this meeting it was widely expected. Those expectations are being trimmed back.

• Westpac forecast the RBNZ to hike its cash rate by 25bp at the April meeting