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MNI RBNZ Review - April 2023: Surprise 50bp, Data Moderation To Determine May Outcome

RBNZ
  • The RBNZ unexpectedly hiked rates 50bp to 5.25%, in contrast to the RBA’s pause at 3.6%. It was widely expected that rates would rise 25bp, following recent overseas banking turmoil and very soft Q4 GDP. 25bp was considered by the Committee but it opted for 50bp because inflation remains “too high and persistent” and the labour market too tight.
  • With inflation still too high and the labour market too tight, and Q1 CPI (April 20) and wages/employment (May 3) data due before the May 24 meeting, which will also include updated forecasts, another 25bp is likely then.
  • Click to view the full review: MNI RBNZ Review - April 2023

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