Forecasts for RBNZ rate hikes are being ramped higher after surging inflation report

The inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term data is here:

NZ Q3 CPI 2.2% q/q (expected 1.6%)

NZD/USD response:

NZD/USD up a few ticks after the surging inflation report

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Analysts in New Zealand are now marking their Reserve Bank of New Zealand rate hike calls up.

ANZ:

• expect the RBNZ to raise the OCR 75bp in both November and February
• peak of 5% (previously at 4.75%)
• "domestic and core inflation pressures unexpectedly accelerated in Q3"

ASB:

• expect a +75 basis-point hike at the 23 November meeting
• forecast peak for the OCR raised to 5.25%, from 4.25%
• “A self-sustaining high inflation dynamic looks like it is becoming increasingly embedded,”
• “Restrictive OCR settings and a clear RBNZ focus on delivering eventual sub-3% inflation outcomes are needed.”

Kiwibank raised their forecast OCR peak to 4.5% from 4%:

• “Today’s report will be like a red rag to an inflation-fighting bull”
• “Stronger for longer inflation will force interest rates higher for longer than we had previously expected”

NZD/USD update: