The escalating interest rate outlook

We expected the OCR would take the stairs, but it took the escalator. (Image:Getty)

Thu, 26 May 2022

Interest rates are going up and so is the outlook for how high they'll go, says the Reserve Bank of New Zealand (RBNZ).In its May Monetary Policy Statement, the bank announced an expected 50 basis point increase, taking the official cash rate (OCR) to 2%.And while that did not come as a surprise to most observers, a further increase in the outlook or 'track' for the OCR seems to have surprised a few.It is the fourth consecutive monetary policy statement in which the bank's projection for where the OCR is headed has become steepe...

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