The Reserve Bank of New Zealand statement is due at 0200 GMT with Governor Orr's news conference following at 0300 GMT.
Earlier:
- RBNZ to hike another 50bp with focus on MPS - Credit Agricole
- RBNZ RATE HIKE WATCH: NZDUSD corrects to the 200 hour MA. RBNZ rate decision tomorrow
- RBNZ rate hike coming on Wednesday - NZD impact & preview
- RBNZ shadow Board recommends a 50bp cash rate hike this week
- RBNZ meet next week - preview - "should be NZD-supportive"
- Analysts are unanimous that the RBNZ will hike cash rate by 50bp
Snippet from BNZ:
- The RBNZ will be pleased that last week’s data showed some easing of inflation expectations, while the housing market continues to weaken at a rapid pace, but this must be viewed against recent upside surprises in nontradeables CPI inflation and wages inflation.
- A bleak economic outlook won’t prevent the RBNZ from hiking rates another 50bps – universally expected by surveyed economists and fully priced in the OIS market – with the still-strong domestic inflation backdrop leaving the Bank no choice. The big fall in wholesale rates since mid-June has fed into lower mortgage rates. This goes against what the Bank is trying to achieve with tighter monetary policy. The Bank is unlikely to want to see further falls in mortgage rates and will need to maintain a hawkish tone to achieve this. Market reaction will be determined by the tone of the outlook and the OCR projections, which are expected to show the OCR still peaking around the 4% mark, albeit earlier than projected in May.
The RBNZ rate hike cycle so far:
