RBNZ to hold the OCR at 1.75% next week - Westpac

Michael Gordon, Acting Chief Economist at Westpac, expects the Reserve Bank to hold the OCR at 1.75% next week, but with a stronger signal that the next move in interest rates will be up.

Key Quotes

“Inflation is now close to the 2% target midpoint, though partly due to some temporary factors that are likely to fade over the next year.”

“The challenge for the RBNZ now is to keep inflation on target over the medium term. The economy is growing steadily, but not at a pace that suggests the RBNZ needs to hit the brakes.”

“And higher mortgage rates have already had a noticeable impact on house prices and consumer spending.”