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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EXECUTIVE SUMMARY
- The RBNZ stepped up the pace of its rate-hike cycle and raised the OCR by 75bp, while flagging a debate over an even larger increase in the policy rate. Inflation remains a clear focus, with recent CPI readings exceeding expectations and calling for a firmer response from the Reserve Bank.
- The central bank now expects a 12-month recession starting in 2Q2023, which will lead to a peak-to-trough 1% contraction in GDP. Still, the Committee charted a steeper OCR track as it is ready to sacrifice growth for the sake of achieving its Monetary Policy Remit.
- The staff revised the estimate of a neutral OCR level higher, taking into account elevated inflation expectations, which further raised pressure on the RBNZ to step up the pace of tightening. Governor Orr noted that the OCR is now in "officially contractionary" territory, albeit projections suggest that February may see a repeat of this week's jumbo-sized rate hike.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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