ANZ are expecting the RBNZ to hike its cash rate in February and in April, to 6%

The Reserve Bank of New Zealand next meet on 28 February, and then on 10 April.

ANZ cite:

  • We now expect the RBNZ to hike the OCR 25bp in Feb and April, taking it to 6%.
  • No one piece of data is to blame but a series of small, unwelcome surprises.
  • We just don’t think the RBNZ will feel confident they’ve done enough to meet their inflation mandate. The buck stops there.

The Official Cash Rate (OCR) is currently 5.5%. ANZ are tipping a 25bp rate hike at both meetings.

This is an against consensus call, with market pricing just under 90% for an on-hold decision this month.

NZD/USD has been marked up on this. I suspect we’ll see a fade into it.

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