Money talks but is it talking nonsense?

Reserve Bank governor Adrian Orr will unveil the decision next week. (Image: Getty)

Wed, 11 Aug 2021

If money talks, what money in the wholesale markets is telling us is that it's a dead cert the Reserve Bank is going to hike its official cash rate next week before any of the world's major central banks do post covid.As of early this week, the market was pricing in a 100% chance of an OCR hike from 0.25% to 0.5% next week and a 78% chance of the OCR reaching 1% by year end.Economists at the five largest trading banks all agree the RBNZ will hike at least 25 basis points and some economists are even talking about a 50bp hike to 0.75% ne...

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