ANZ NZ Sees RBNZ hiking 50bps in both April and May

By Sophia Rodrigues

Published On 08 Mar 2022 , 09:11 AM

Economists at ANZ New Zealand have revised their call for the RBNZ OCR, now expecting 50bps hike at each of the meetings in April and May, that would take the rate to 2.0% (1.0% now).

They now see the OCR reaching a peak of 3.5% in April 2023 (3% previously). The rate call is despite clearly mounting downside growth risks, both in New Zealand and globally and expectations of 10% fall in house prices.

"The OCR call change comes primarily on the back of our updated CPI forecasts that now have inflation peaking at a broad-based 7.4% in Q2, rather than the RBNZ’s MPS forecast of a 6.6% peak in Q1," ANZ wrote in a note.

"The RBNZ would prefer to look through oil price shocks, but right now, with inflation expectations so high and rising, they just can’t.

LATEST SNIPPETS

NAB Says RBA QE to End February 2022

National Australia Bank economists expect the RBA to end its bond purchase program (QE) by February, making it the fi...

Published on : 29 Oct 2021 , 02:39 PM
Australia's core CPI in RBA target band for first time since 2015

Australia's Q3 CPI shows core inflation rising into RBA's target band for the first time since 2015 (and impo...

Published on : 27 Oct 2021 , 11:39 AM
Australia's big four banks on RBA's 0.1% April 2024 target

Big four banks on the RBA's 0.1% target on April 2024 bond:

--ANZ expects the RBA to drop the target wh...

Published on : 27 Oct 2021 , 10:55 AM
ANZ economists expect RBA to drop April 2024 target if guidance shifts

Economists at ANZ Bank expect the RBA to drop the 10bps target on April 2024 bond if it brings forward timing for the...

Published on : 27 Oct 2021 , 09:18 AM
Australian dollar currency notes on issue crosses 100 billion

The amount of Australian dollar currency notes on issue crossed the A$100 billion mark this week, rising to A$100.153...

Published on : 22 Oct 2021 , 05:25 PM
Some Facts On RBA/AOFM Bond Lending Facility

Following RBA announcement after market hours Tuesday about indicative fee for borrowing (RBA as lender) April 2023 a...

Published on : 20 Oct 2021 , 10:12 AM
RBNZ's Hawkesby Promoted to Deputy Governor

The Reserve Bank of New Zealand has announced the promotion Christian Hawkesby to the position of deputy governor, ef...

Published on : 06 Oct 2021 , 12:00 AM
Big Four Banks Forecast for RBA Cash Rate

Big four banks' forecast for the RBA cash rate:

--ANZ expects first rate hike in 1H of 2024. "Our...

Published on : 17 Sep 2021 , 10:50 AM
RBA Lowe's speech at 1300 hours today

Small change in timing of RBA Governor Philip Lowe's speech this afternoon, now at 1300 hours Sydney time (was 12...

Published on : 14 Sep 2021 , 11:55 AM
AOFM's 2032 Treasury Indexed Bond Syndication likely A$3.0B

The AOFM is expected to issue A$3.0 billion of 0.25% November 2032 Treasury Indexed Bond after orderbook topped A$7.1...

Published on : 24 Aug 2021 , 09:10 AM