Coming up this week – the RBNZ will hike its cash rate

The Reserve Bank of New Zealand meet on Wednesday November 24. 

  • Monetary Policy Statement is due at 0100 GMT
  • and the Media Conference will follow

Earlier previews are here:

Via KiwiBank, what they are expecting. The title of their note: 

  • The RBNZ will hike the cash rate this week, and signal many more to come.

From the note, in very brief:

  • There is a 40% chance now priced in that the RBNZ will lift the cash rate by 50bps this week. The local data has consistently exceeded expectations. Monetary policy is simply too loose for an economy running through full employment. However, we don’t believe that the RBNZ will deliver a 50bp hike this week. We’re sticking with a 25bp rate hike, with the RB signalling more to come. Forecasts will need to be revised significantly higher. And we expect the RBNZ to adjust their OCR track by pulling forward forecast hikes and pushing higher the end point.
Reserve Bank of New Zealand Governor Adrian Orr

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