New Zealand Dollar: RBNZ set for second hike – BNY
BNY’s Geoff Yu expects the Reserve Bank of New Zealand to deliver another 25bp hike to 2.75%, supported by elevated inflation and strong confidence data.
The Reserve Bank of New Zealand (RBNZ) is poised to increase interest rates for a second time, with a 25 basis points hike to 2.75%, according to BNY's Geoff Yu. This move is driven by elevated inflation and strong business and consumer confidence data. The RBNZ had previously forecast the OCR to reach 3.0% by Q1 2027 and continue to rise to 3.3% in the medium term.
However, markets now anticipate the rate to be around 3.25% by March 2027. The upcoming decision by the RBNZ is a primary focus, with investors closely monitoring the updated macroeconomic forecasts and the Official Cash Rate track.
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