Markets

ANZ raises cash rate forecast as inflation hits 7.3%

Dan Brunskill
Mon, 18 Jul 2022

ANZ raises cash rate forecast as inflation hits 7.3%
With inflation surprisingly high, the Reserve Bank could push through an extra rate hike. (Image: Getty)
Dan Brunskill
Mon, 18 Jul 2022
Economists at New Zealand’s largest lender now expect the Reserve Bank to follow through with plans to raise the official cash rate all the way to 4% after inflation hit a 32-year high.ANZ Bank chief economist Sharon Zollner said consumer prices climbing 7.3% year-on-year meant the Reserve Bank of NZ was likely to deliver an extra 50-basis point rate hike in November.Zollner said her research team now expected the official cash rate to peak at 4%, rather than 3.5% as most economists had been predicting.A 75-basis point hike in August was...

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