ANZ Bank: Reserve Bank of New Zealand Has Significantly Shifted Toward a Rate Hike Stance, Expecting Three Rate Hikes This Year

Jin10 Data, May 27 — The Reserve Bank of New Zealand kept the official cash rate (OCR) unchanged at 2.25% on Wednesday, but ANZ Bank stated that the Reserve Bank of New Zealand "has clearly become very inclined toward a rate hike." The decision was a 3-3 tie, with Reserve Bank Governor Berman casting the decisive vote. At the same time, the published interest rate path chart shows that the pace of future increases in the official cash rate will be faster than previously expected in February this year. ANZ Bank said that this chart indicates a very high probability that the Reserve Bank of New Zealand will raise rates in three consecutive upcoming meetings. ANZ New Zealand Chief Economist Sharon Zollner said, "We still expect three rate hikes this year, in July, September, and October." She added, "We remain open to the possibility that the official cash rate may need to rise above 3%, but there are many variables to observe before then."
(From Jin10 Data App)