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VIEW: ANZ: Lift Off Into A Stormy Flight Path

RBNZ

ANZ note that "as expected, the RBNZ raised the Official Cash Rate (OCR) 25bp to 0.50% today. The tone acknowledged downside risks and concentrated lockdown pain, but emphasised the robustness of the medium-term outlook."

  • "Risks around growth (particularly near term) are to the downside, but inflation risks are to the upside. That's awkward - and a global theme."
  • "Our OCR forecast continues to be follow-up hikes in November and February, and then a cautious series of hikes taking the OCR to 1.5% by August next year."
  • "As has been the case for some time, the risks are skewed towards something coming along to derail the RBNZ's hiking cycle before its completion, despite extremely strong inflation pressures."
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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