From earlier: Reserve Bank of New Zealand raises its cash rate by 25bps, as expected

More on the earlier statement is here: MPC continues to reduce monetary stimulus

Governor Orr Press conference now:

  • reopening of the New Zealand border does not change the policy outlook
  • 25bp hike gives more options, can take time at this point
  • not worried about rising wages, these have been well behaved
  • given huge debt loads we must exercise caution
  • house price rises will alleviate as interest rates rise


  • Orr says he sees steady 25bp steps as the balanced approach for now
  • sees the OCR (official cash rate) at 2.5% by the end of 2023

If the RBNZ are at 2.5% by the end of 2023 and the RBA, as they keep telling us, is still on hold does that bring NZD AUD parity into play (on policy divergences)?

more to come


I'll have the pertinent headlines as they come, but the Live link is here if you prefer.


The chap next to Orr is leaving the Bank in the new year. The chap furthest from Orr is also leaving.