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MNI BRIEF: RBNZ Hikes Rates 25bps To 0.75%, Sees 2.25% By 2024

MNI (Sydney)
SYDNEY (MNI)

New Zealand's central bank has hiked its Official Cash Rate by 25bps to 0.75% on Wednesday and released projections which showed rates at around 2.25% by 2024.

The projections were included in the RBNZ's Monetary Policy Statement, also released today, which showed a more hawkish track for the OCR than the previous MPS published in August, see: MNI STATE OF PLAY: RBNZ To Hike Key Rate, But By How Much?.

The RBNZ's Monetary Policy Committee cited an expectation for headline inflation to measure above 5% in the near term and "unsustainable" levels for house prices in its decision. The bank has also purchased around UZ$60 billion in NZ government bonds under its Large-Scale Asset Purchase program, and in today's statement said these holdings would be wound down "gradually," with more details to come next year.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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