The Reserve Bank of New Zealand Monetary Policy Review announcement — including the official cash rate (OCR), is due at 0100 GMT.
There is just the decision and statement today, there is no news conference scheduled, ‘
BNZ brief preview:
- market fully pricing a 50bps OCR hike, which would take the cash rate to 3.50%.
- The market reaction is likely to hinge on the RBNZ’s characterisation of the policy outlook, particularly whether it states that its prior guidance for a peak in the OCR of 4%/4.25% still holds or whether it now expects a higher terminal cash rate.
- While the RBNZ was clear in August that it expected to hike the OCR by 50bps at both the October and November meetings, given the RBA’s surprise step down in its pace of tightening yesterday, the market will no doubt be on the lookout for any signs that the RBNZ might consider a smaller rate hike in the coming meetings.
The Reserve Bank of New Zealand rate hike cycle began on October 6 2021:
