RBNZ could hike 50 basis points and signal more to come

The RBNZ is widely expected to hike but it remains to be seen by how much. (Image: Getty)

Tue, 23 May 2023

Last week’s budget and stronger-than-expected migration could result in the Reserve Bank of New Zealand (RBNZ) hiking by another 50 basis points to 5.75% this week and signal more hikes to come. “We had previously thought that the RBNZ would do a final 25bp increase on May 24. Post-Budget, we now expect a 50bp lift in May,” said ASB chief economist Nick Tuffley. “We think that will be it, but that the RBNZ will flag the risk of a further hike.”The central bank has lifted the official cash rate (OCR) from...

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