Free Trial

VIEW: Westpac Lift Terminal Rate Call

RBNZ

Westpac write “we have revised up our forecast to a peak of 4.5% for the Official Cash Rate (previously 4%).”

  • “We expect that to be achieved with three more 50 basis point hikes at the October, November and February reviews”
  • “Recent developments point to the risks of stronger and more persistent inflation pressures than we anticipated.“
  • “In particular, we now expect the New Zealand dollar to be lower for longer, adding to the pace of inflation in the year ahead.“
  • “In an already-overheated economy – which is proving to be more resilient in the near term than we thought – the risks of second-round inflation pressures are greater.”
  • “At next week’s review, we expect the RBNZ to repeat that the OCR will continue to rise “at pace”, and to signal a higher peak for this cycle.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

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.