ANZ cite the CPI data out earlier from New Zealand:
- New Zealand Q4 inflation 1.4% q/q (expected 1.3%) 7.2% y/y (expected 7.1%)
- NZ Q4 CPI higher than expected. Later today the RBNZ releases its own CPI data, stay tuned
ANZ:
- Thanks to finally getting a downside surprise on non-tradables inflation today, the RBNZ can ease off a little.
- We now see the OCR being raised 50bp in Feb (not 75), and two follow-up 25bp hikes
- taking the OCR to a peak of 5.25% in May (prev: 5.75%)
ANZ graph:
