The Reserve Bank of New Zealand is widely expected to hike its official cash rate (OCR) by 50bp today:
- Wednesday, 13 July 2022
- due at 0200 GMT
Previews earlier:
- Reserve Bank of New Zealand rate hike decision coming today, +50bp the consensus estimate
- Economic calendar in Asia – Chinese trade data and the RBNZ interest rate announcement
- ANZ now forecast the RBNZ will hike 50bps in both July and August (previously 50 then 25)
- Poll shows the consensus for a 50bp interest rate hike from the RBNZ next week
- “Preview”: Reserve Bank of New Zealand expected to raise its official cash rate 50bps
- Risk for NZD at today’s RBNZ meeting is lowering of the OCR peak – Credit Agricole
This via Westpac:
- Our “neutral” scenario (least likely to disturb the market) comprises a 50bp hike, and a statement signalling that the economy is evolving as expected.
- Our dovish scenario comprises a 50bp hike, and a statement which emphasises the downside risks to the global economy.
- Our hawkish scenario comprises a 50bp hike, and a statement which emphasises its concerns about high inflation and that inflation expectations could remain elevated.
WPAC see the implications for the NZD/USD as:
From left to right … current spot …. $kiwi impact from a dovish scenario …. neutral …. hawkish
This article was written by Eamonn Sheridan at www.forexlive.com.
