- Analytics
- News and Tools
- Market News
- New Zealand: RBNZ raised rates by 25 bps, starts QT in July – UOB
New Zealand: RBNZ raised rates by 25 bps, starts QT in July – UOB
Economist at UOB Group Lee Sue Ann assesses the latest RBNZ monetary policy meeting.
Key Takeaways
“The Reserve Bank of New Zealand (RBNZ) increased its Official Cash Rate (OCR) to 1.00%. It will also begin quantitative tightening in Jul, selling down its holdings of government bonds at a rate of NZD5 bn per year. Maturities will not be reinvested.”
“In our view, two things stood out at this meeting. First, the RBNZ had considered a 50bps hike. Second, new forecasts published by the RBNZ show the OCR rising to 2.50% over the next 12 months and peaking at about 3.25% at the end of 2023. In Nov, the bank forecast a lower peak of about 2.50%.”
“While these clearly show how serious the RBNZ is about containing inflation risks, we maintain our view for 25bps hike in May, Aug and Nov this year, taking the OCR to 1.25% by mid-2022, and for it to reach 1.75% by end-2022, taking into account several downside risks, including COVID-19 developments, the domestic housing market and external geopolitical environment. The next monetary policy meeting is on 23 Apr.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
