RBNZ Gov Orr says inflation remains too high, that’s why we’ve kept cash rate at 5.5%

RBNZ Governor Orr with more, his early remarks are here:

• RBNZ’s Hawkesby says the New Zealand financial system remains strong

The latest data for New Zealand’s consumer price index was in late January when Q4 2023 CPI was reported at 4.7% y/y

• Q3 2023 was 5.6%

So, an improvement, and the 4.7% is the smallest annual rise in the CPI in over two years. The ‘but’ is that the RBNZ target is 1 – 3 %.

The persistence of high inflation in New Zealand is leading to thoughts of further rate hikes from the RBNZ:

• ANZ are expecting the RBNZ to hike its cash rate in February and in April, to 6%
• NZDUSD moves higher helped by ANZ call for higher rates

This article was written by Eamonn Sheridan at www.forexlive.com. Source