We had the Reserve Bank of New Zealand policy announcement earlier
and a jump for the kiwi$
Westpac response (in brief):
- RBNZ ... was more hawkish on future prospects.
- RBNZ’s projections continue to reflect the risk of further increases in the OCR in 2024. An easing cycle looks quite some time off.
- RBNZ’s projections for the OCR were revised 10bp higher to a peak of 5.69% in September 2024, implying around a 75% chance of a further 25bp rate hike.
- The projections imply a gradual easing of policy from the first half of 2025.
- The long-run neutral OCR was adjusted up 25bp to 2.5%.
- ... more tightening may be required to ensure inflation returns promptly to target
Bolding is mine.
NZD/USD update:
![rbnz nzd rate hike 29 November 2023](https://images.forexlive.com/images/rbnz%20nzd%20rate%20hike%2029%20November%202023_id_ee589b40-f2bc-4c71-9ecb-fd6a0771366e_size900.jpg)