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

Westpac Evans sees Aussie 10-year yield at 1.9% end-2021

Westpac's chief economist Bill Evans has raised his forecast for US 10-year bond yield to 1.8% from 1.5% by the e...

Published on : 19 Feb 2021 , 04:28 PM
Australia jobless rate drops to 6.4%; hours worked falls sharply due to leave

Australia's unemployment rate fell to 6.4% in January from 6.6% as the number of employed rose 29,100 while the n...

Published on : 18 Feb 2021 , 12:08 PM
ANZ analysts see NZ in leading position to normalize monpol

Forex analysts at ANZ have created an interesting pressure gauge to measure and rank the distance that each G10 econo...

Published on : 17 Feb 2021 , 11:35 AM
Key headlines from RBA statement Tuesday

From the RBA's February Monetary Policy Decision statement:
--QE extension of A$100 billion after current...

Published on : 02 Feb 2021 , 02:35 PM
AOFM updates issuance guidance for rest of the year

Following the release of MYEFO on Thursday, the Australian Office of Financial Management has updated issuance plans...

Published on : 18 Dec 2020 , 09:06 AM
Finally the MYEFO date...

After a few phone calls, I finally managed to get confirmation that MYEFO will be published on Thursday. Even the Tre...

Published on : 14 Dec 2020 , 10:45 AM
Headlines from RBA Debelle's speech Tuesday

Headline from RBA Deputy Governor Guy Debelle’s speech Tuesday:

--RBA CAREFULLY MONITORING IMPACT OF...

Published on : 24 Nov 2020 , 01:30 PM
RBA not buying bonds under yield target; A$2B under QE

The RBA will buy A$2.0 billion of November 2024 to May 2028 AGS under the A$100 billion QE program today.

T...

Published on : 19 Nov 2020 , 11:23 AM
RBA buying longer-term Semis today

The RBA is buying A$1.0 billion of Semis with maturities in the July 2028 to May 2032 range. This is part of its purc...

Published on : 18 Nov 2020 , 11:30 AM
RBA again buying April 2024 under yield target plus A$2B QE

For the third time in a row, the RBA is buying bonds under the 3-year yield target policy at the same time as it is p...

Published on : 16 Nov 2020 , 11:20 AM