BNZ says a rate hike would be a policy mistake

BNZ head of research Stephen Toplis. (Image: BNZ)

Mon, 19 Feb 2024

BNZ Bank is forecasting no change in the official cash rate this month but concedes there is more chance the Reserve Bank of New Zealand hikes than cuts when it delivers the Feb 28 monetary policy statement.“But we think a hike would be a policy error given the extent by which the labour market is easing, spare capacity is growing, and inflation, both headline and core, is falling,” BNZ head of research Stephen Toplis said. The official cash rate (OCR) is 5.5%. Toplis notes that the 3Q GDP was weaker than expected, inflati...

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