Our bank expects the New Zealand Federal Reserve to raise interest rates by 50 basis points this week, in line with market expectations. After raising interest rates by 75 basis points at the meeting in November last year, the subsequent inflation and labor market data were lower than the expectations of the Federal Reserve Bank of New Zealand, which supported the Federal Reserve Bank of New Zealand to raise interest rates by only 50 basis points this time. In line with global central banks.
New economic forecasts will influence the committee’s decision, most notably whether the RBNZ will keep the official cash rate (OCR) peak at 5.5% by May. However, a 50 basis point rate hike is not expected to significantly boost the New Zealand dollar, as the market is more aggressively priced in.
