New Zealand - "RBNZ’s OCR track ... not as aggressive as it could have been"

Author: Eamonn Sheridan | Category: Central Banks

Reserve Bank of New Zealand decision earlier today.

Read from the bottom up for the time sequence:
  • The tone of the Statement was balanced, recognising upside risks to inflation but downside risks to growth.
  • The RBNZ's published OCR track reaches 2.61% by the end of 2024, about half a percent higher than in August, but not as aggressive as it could have been, given starting point surprises.
  • As before, we believe tightening financial conditions will cool housing and the broader economy pretty smartly, and that an OCR of 2% by the end of next year will in practice prove sufficient to knock inflation on the head.

Note that last point from ANZ, while the RBNZ  forecast the OCR eventually reaching 2.6%ANZ view 2% "will do the job."

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose