ANZ: Reserve Bank of New Zealand is expected to keep interest rates unchanged next week

ANZ chief economist Sharon Zollner said the Reserve Bank of New Zealand is expected to keep the official cash rate (OCR) unchanged at 5.50% next Wednesday, reiterating its “watch, worry and wait” stance.

New Zealand has seen mixed economic data since July, with relatively resilient demand but an on-plan decline in inflation measures, an appealing combination but questionable sustainability.

Zollner added that ANZ does not expect a rate hike next week, but OCR forecasts may show rates staying at elevated levels for a little longer.