The Reserve Bank of New Zealand have noted that a risk to their intention to hike rates ahead is the coronavirus.
The 94 cases today will provide some thought on how it will impact the RBNZ, 94 is a record dally new case count. I'd suggest, at this stage, not much. My reasoning is vaccinations are coming along well in New Zealand and experience elsewhere has shown a high vaccination rate reduces the severity of the load on the health system (fewer hospitalisations, ICU admissions and deaths ... ps. not zero, but far, far fewer.) And thus, as the vax rate rises the restrictions in the economy lessen.
NZ's largest city, Auckland, remains in a harsh level 3 lockdown.
The next RBNZ monetary policy meeting is November 24. I suspect another 25bp rate hike is on their agenda. Soon to be installed new Dep Gov Hawkesby said in comments a couple of weeks ago that 50bp rate hikes were off the table given the uncertainty of the health environment.
