ASB Bank predicts official cash rate will hit 4.25% after strong June quarter

ASB bank was alone in the call, with the other large trading banks all sticking to previous forecasts of a 4% terminal cash rate. (Image: Dan Brunskill)

Dan Brunskill

Thu, 15 Sep 2022

A strong rebound in the New Zealand economy during the June quarter has prompted ASB to lift its official cash rate (OCR) forecast to a peak of 4.25% in February 2023. NZ’s economy expanded 1.7% in the June quarter, bouncing back from a negative quarter faster than many economists had predicted.Statistics NZ said the services industry was the main contributor, expanding 2.7% as covid restrictions lifted and international visitors started spending on recreational activities.The quarterly growth means NZ has avoided a technical recessi...

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