RBNZ monetary policy meeting coming up Wednesday 24 November 2021, preview

The Reserve Bank of New Zealand is on track for a rate hike at their meeting tomorrow. 

  • 2pm New Zealand time
  • which is 0100 GMT 

Earlier previews:

This now via ASB in Auckland, where, the analyst notes on lockdwon impacts:
  • It’s literally going to be 3 and a half months between drinks for Auckland hospitality and other businesses that have been feeling prolonged pain.

ASB’s preview (in brief):

  • For the record, we expect a 25bp increase and some tough talk about rising inflation. 
  • There is not much in it, but right now doesn’t seem the right time for a 50bp increase – despite the inflation signs. They may sound like words from the bowels of an Auckland COVID bunker, and to some extent they are. It’s literally going to be 3 and a half months between drinks for Auckland hospitality and other businesses that have been feeling prolonged pain. Although a smaller OCR hike may not in itself make a material financial difference right now relative to a bigger one, this is a time when trying not to further dampen confidence is important.
  • Furthermore, we are heading into the unknowns of the Summer of COVID. It will take a little more time to know how well the health system copes and whether some winding back of new-found freedoms is needed – which has happened recently in Europe, for example.

Governor Orr will speak at a news conference following the Statement:

The Reserve Bank of New Zealand is on track for a rate hike at their meeting tomorrow. 

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