New Zealand: Further tightening expected from the RBNZ – UOB

Economist at UOB Group Lee Sue Ann suggests the RBNZ could hike the OCR by 50 bps at its meeting on October 5.

Key Quotes

“We believe the RBNZ is on track to hike the OCR to 4.00% by the end of this year, though risks remain skewed towards more rate hikes in 1Q23, and thus an OCR higher than 4%, before the RBNZ pauses in the current tightening cycle.”

“At this RBNZ meeting in Oct, we are penciling in a 50bps hike in the OCR to 3.50%.”