New Zealand - "RBNZ’s OCR track ... not as aggressive as it could have been"

Reserve Bank of New Zealand decision earlier today.

Read from the bottom up for the time sequence:

• New Zealand - "the time of cheap money is over, and interest rates are rising, swiftly"
• RBNZ Governor Orr says the reopening of the New Zealand border does not change the policy outlook
• NZD/USD trading lower after the as expected Reserve Bank of New Zealand rate hike
• RBNZ raises its cash rate by 25bps, as expected

ANZ response incoming, in summary the key points:

• The tone of the Statement was balanced, recognising upside risks to inflation but downside risks to growth.
• The RBNZ's published OCR track reaches 2.61% by the end of 2024, about half a percent higher than in August, but not as aggressive as it could have been, given starting point surprises.
• As before, we believe tightening financial conditions will cool housing and the broader economy pretty smartly, and that an OCR of 2% by the end of next year will in practice prove sufficient to knock inflation on the head.

Note that last point from ANZ, while the RBNZ forecast the OCR eventually reaching 2.6%ANZ view 2% "will do the job."