RBNZ hikes its cash rate by 50bp as expected

RBNZ takes the Official Cash Rate to 3% from 2.5%

RBZN projections for the path ahead:

• sees OCR at 3.69% in December this year (up from its previous projection at 3.41%)
• sees OCR at 4.1 in September 2023 (from 3.95%)
• sees OCR at 4.1% in December 2023 (from 3.95%)
• sees OCR at 3.65% in September 2025

On the currency, sees the NZ dollar TWI around 71.7 in September 2023 (prior was 71.8))

More:

• Conditions need to continue to tighten
• Core consumer price inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term remains too high and labour resources remain scarce
• Range of indicators highlight broad-based domestic pricing pressures

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RBNZ Governor Orr new conference is next, due at 0300 GMT: