It is expected that the Reserve Bank of New Zealand offers 25 basis point rate hike for third straight meeting as central bank struggles to combat rising inflationas shown by the latest Bloomberg survey of 20 economists.
The RBNZ will announce its policy decision on Wednesday at 01:00 GMT. It will also publish new forecasts in its quarterly monetary policy statement.
Key comments
“The Reserve Bank will raise its official cash rate by 25 basis points to 1% on Wednesday in Wellington, most of the economists surveyed have shown.
“Two are predicting a 50-point move. The Monetary Policy Committee may project an OCR of around 2.5% by the end of the yeara more aggressive upward path than previously forecast and would require a hike at every policy meeting in 2022.”
“Economists also expect the RBNZ explain how you will begin to reduce your balancewhich increased during its quantitative bond-buying easing program.”
“Several economists expect the central bank start selling small amounts of government bonds to the Treasury Department.
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
