According to the latest Reuters poll of economists, The Reserve Bank of New Zealand (RBNZ) is on track to make a 50 basis point rate hike for the third time in a row when it meets next Wednesday.
Featured Comments
a majority, 15 of 22, now expect the Official Cash Rate (OCR) to hit 3.50% or more by the end of this yearin line with market prices.
More than 90% of economists, 20 of 22, expect the RBNZ to raise the interest rate by 50 basis points, to 2.50%, at its meeting on July 13and only two foresee 25 basis points.
If majority opinion prevails, it would be the biggest monetary policy tightening since the central bank introduced OCR in March 1999.
More than 70% of the respondents, 16 of 22, expect another half-point hike at the August meetingwhich would take rates to 3.00%, three times more than before the pandemic.
The latest survey places rates at 3.50% for the whole of next year, according to the average of the forecasts. This figure is lower than the RBNZ’s expectations that rates will rise to 4.00% by the middle of next year.
The survey indicates that inflation will average 6.0% this year and will drop to 2.8% in 2023.
The New Zealand economy will grow 2.3% in 2022 and 2023, which is a notable reduction from the 3.1% and 2.7% forecast in April. Only a few economists foresee a full recession next year.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
