Central Banks
New Zealand’s Central Bank Set to Raise Interest Rates, Leave Door Open for More
- Economists predict 25-point hike to 5.5%, higher track for OCR
- Surging migration, looser fiscal policy may avert recession
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New Zealand’s central bank is poised to raise interest rates for a 12th straight meeting and may signal it’s not done yet as surging immigration and looser fiscal policy counter its efforts to curb demand.
The Reserve Bank will lift the Official Cash Rate by 25 basis points to 5.5% Wednesday in Wellington, according to 18 of 21 economists in a Bloomberg survey. Three see a 50-point move. The RBNZ may leave the door open to further tightening by lifting its forecast track for the OCR beyond the 5.5% peak in its current projections.