Central Banks
RBNZ Seen Delivering Hawkish Hold Ahead of New Zealand Election
- Central bank expected to leave cash rate at 5.5% on Wednesday
- Economists see risk of another hike in coming months
The Reserve Bank of New Zealand in Wellington.
Photographer: Mark Coote/BloombergThis article is for subscribers only.
New Zealand’s central bank is expected to keep interest rates on hold 10 days out from a general election, but policymakers may leave the door open to another increase if needed to tame inflation.
The Reserve Bank will keep the Official Cash Rate at 5.5% Wednesday in Wellington, according to all 22 economists in a Bloomberg survey. However, the RBNZ is expected to maintain a hawkish tone and reiterate the need for policy to remain restrictive for a prolonged period.