RBNZ Governor Wheeler tells the Dominion Post:
“We are saying we will need to increase the official cash rate sometimes next year and our forward projections suggest it will increase by about 2 percent by the end of 2015.”
Wheeler talked about rate hikes in 2014 in the RBNZ decision. The OIS market is pricing in 79 basis points worth of hikes in the next 12 months so 200 bps of hikes in two years isn’t all that big of a surprise but it’s still good news.
Quick pop in NZD/USD to 0.8245 from 0.8235.
