Has the Reserve Bank's shock OCR increase backfired?

ANZ chief economist Sharon Zollner thinks RBNZ achieved what it wanted to. (Image: NZ Herald)

Tue, 11 Apr 2023

You have to wonder whether the Reserve Bank of New Zealand is happy with the reaction from financial markets in response to last Wednesday’s 50 basis point hike in its official cash rate to 5.25%.The market was shocked, having priced in just a 25 basis points (bp) hike.But apart from very short-term interest rates out to a year, wholesale interest rates are now down across the curve compared to just before the Reserve Bank of NZ's (RBNZ) 2pm announcement on April 5.Bank of NZ market strategist Jason Wong suggested RBNZ’s hike &l...

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