ANZ raises cash rate forecast as inflation hits 7.3%

With inflation surprisingly high, the Reserve Bank could push through an extra rate hike. (Image: Getty)

Mon, 18 Jul 2022

Economists at New Zealand’s largest lender now expect the Reserve Bank to follow through with plans to raise the official cash rate all the way to 4% after inflation hit a 32-year high.ANZ Bank chief economist Sharon Zollner said consumer prices climbing 7.3% year-on-year meant the Reserve Bank of NZ was likely to deliver an extra 50-basis point rate hike in November.Zollner said her research team now expected the official cash rate to peak at 4%, rather than 3.5% as most economists had been predicting.A 75-basis point hike in August was...

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