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Economics

New Zealand Set to Stay in Vanguard of Tightening to Cool Prices

  • Reserve Bank is forecast to raise OCR by 50 basis points to 3%
  • Move seen even amid early signs of softening economic activity
The Wellington harbour and the city's skyline seen from an observation deck at Mount Victoria Lookout in Wellington, New Zealand.

The Wellington harbour and the city's skyline seen from an observation deck at Mount Victoria Lookout in Wellington, New Zealand.

Photographer: Birgit Krippner/Bloomberg

New Zealand is poised to keep spearheading a global tightening cycle to rein in spiraling inflation, even as signs emerge that its rapid-fire interest-rate increases are beginning to cool the economy.

The Reserve Bank will deliver its fourth straight 50 basis-point rise at Wednesday’s policy meeting to take the Official Cash Rate to 3%, according to all 18 economists surveyed.