Free Trial
USDCAD TECHS

Remains Vulnerable

AUDUSD TECHS

Trend Needle Points North

US TSYS

Bonds Near Highs, Yield Curves Flatter

EURJPY TECHS

Bearish Outlook

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

VIEW: Westpac Now Look For 4.00% Peak In OCR

RBNZ

Westpac note that “the New Zealand labour market remains extremely tight. While the unemployment rate rose slightly, the other survey details point to severe capacity constraints and intensifying wage pressures. We now expect the Reserve Bank to lift the OCR to a peak of 4%, most likely by the end of this year. The recent resurgence of inflation has been due to a complex mix of supply-side shocks and overheated demand. In our view, today’s results tip the balance of responsibility for inflation a bit more towards ‘Team Demand’. That in turn means that monetary policy will hold more of the burden of adjustment. We continue to expect a 50 basis point increase in the OCR at the 17 August review, with a signal of more to come.”

128 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Westpac note that “the New Zealand labour market remains extremely tight. While the unemployment rate rose slightly, the other survey details point to severe capacity constraints and intensifying wage pressures. We now expect the Reserve Bank to lift the OCR to a peak of 4%, most likely by the end of this year. The recent resurgence of inflation has been due to a complex mix of supply-side shocks and overheated demand. In our view, today’s results tip the balance of responsibility for inflation a bit more towards ‘Team Demand’. That in turn means that monetary policy will hold more of the burden of adjustment. We continue to expect a 50 basis point increase in the OCR at the 17 August review, with a signal of more to come.”