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A Look At Market Pricing

RBNZ

Just to zero in on market pricing in the wake of the most recent RBNZ-related interview published by our policy team, which saw former RBNZ Assistant Governor Grant Spencer tell us that "the Bank is likely to begin raising interest rates in August, hike again in November and take its official cash rate to 2.00% or more by the third quarter of next year." The OIS strip is currently pricing a ~60% chance of a 25bp hike at the Bank's August meeting, with a cumulative ~75bp (3x 25bp hikes in total) of tightening come the end of the Bank's July '22 meeting priced. Plenty of sell-side calls look for a more aggressive tightening cycle than the market currently prices (as we have covered in recent weeks).

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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