What's ahead for the Reserve Bank of New Zealand - terminal rate of 5.5%?

Comments from BNZ on their outlook for Reserve Bank of New Zealand rate hikes ahead:

Senior RBNZ officials ... Karen Silk and Christian Hawkesby speaking over the past two days

• Both highlighted the importance of ensuring 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 expectations returned to levels consistent with the inflation target.
• Asked whether there was a scenario where the RBNZ could stop short of taking the OCR to the 5.50% peak indicated by its projections, Assistant Governor Silk noted “if the information shows that we’ve reached that [inflation] peak and we see that turn and we’re starting to see real impacts on inflation and inflation expectations, then that does offer us the opportunity to revisit.”

BNZ's view:

• Our initial estimates are that CPI inflation over the next two quarters will come in well below the RBNZ’s forecasts. This opens up a potential pathway for a lower peak in the OCR, although our central forecast is aligned with the RBNZ’s projections at this point.

And, the data point to watch:

• Given the emphasis the RBNZ is placing on inflation expectations, the RBNZ’s Survey of Expectations will become a major data point on the calendar for the market.

The Reserve Bank of New Zealand is not meeting again until February next year: