New Zealand central bank governor says chances of December hike are ’high’

Wellington, October 29 - New Zealand's central bank governor, Anna Breman, declared on Thursday that the probability of a December hike in the official cash rate is high. Breman informed the New Zealand Herald that all committee members concur that additional OCR (official cash rate) increases are likely. However, the exact timing remains uncertain and will hinge on the economic outlook and the trajectory of inflation.

When questioned about the likelihood of a hike in December, Breman stated, "I would say that they were high." The Reserve Bank of New Zealand unexpectedly maintained the cash rate at 2.75% during its monetary policy review on Wednesday, but indicated further increases were probable. Consequently, the New Zealand dollar experienced a significant drop in value.

Presently, the market estimates a 77% chance of a December hike. Breman emphasized in the interview that despite living in uncertain times, the Reserve Bank will remain calm and steadfast in adhering to its mandate of ensuring inflation returns to target.