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NZGBS: Slightly Richer After RBNZ Leaves OCR At 5.50%


NZGBs are 1bp richer after the RBNZ Monetary Policy Committee agreed to leave the OCR at 5.50%.

  • According to the RBNZ, the level of interest rates is constraining spending and inflation pressure as anticipated and required. The Committee agreed that the OCR will need to remain at a restrictive level for the foreseeable future, to ensure that consumer price inflation returns to the 1 to 3% annual target range, while supporting maximum sustainable employment.
  • Swap rates are 2bp lower after the decision, 7-8bp lower on the day.
  • RBNZ dated OIS is 1-3bp softer across meetings after the decision with the terminal OCR nudging lower to 5.69%. The market had given a 25bp hike today a 10% chance.

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