More from the RBNZ news conference: Tightening cycle mature, closer to end than beginning

So far today on the Reserve Bank of New Zealand +75bp rate hike:

• RBNZ raise cash interest rate target by +75bp to 4.25%, as widely expected
• NZD/USD higher after the Reserve Bank of New Zealand raises its cash rate target by 75 bp

• Headlines greeting the RBNZ rate hike: "New Zealand delivers its biggest rate hike ever"

• Responses to the RBNZ +75bp rate hike - ASB forecast cash rate at 5.5% by April 2023

• RBNZ Orr says it will be a shallow recession
• ANZ are now forecasting an RBNZ peak cash rate at 5.75% (vs. current OCR at 4.25%)

More now from the press conference:

• are mature in the tightening cycle, closer to the end than the beginning
• but new shocks are arriving all the time
• we are eager to get to rate point where we can be sure inflation Read this Term can be worn down

These comments are bordering on mixed messaging. This will dilute the impact of rate hikes, which would not be a positive development for the RBNZ nor for New Zealanders subject to higher rates.

NZD/USD update: