NZ: Bank economists divided on whether the Reserve Bank will increase the Official Cash Rate on July 8 after May's close call | Metals Mine

  • NZ: Bank economists divided on whether the Reserve Bank will increase the Official Cash Rate on July 8 after May's close call

    From interest.co.nz

    Bank economists are split on whether the Reserve Bank (RBNZ) will raise the Official Cash Rate (OCR) on Wednesday or hit the pause button for the fourth review in a row. The July Monetary Policy Review (MPR) is out on Wednesday, July 8, with the RBNZ to reveal if its Monetary Policy Committee (MPC) has decided to increase, hold or cut the OCR. The OCR is the base interest rate set by the RBNZ, and the rate banks earn on any money they hold with the RBNZ. This means when the RBNZ increases the OCR, banks may pass that hike onto their own customers in the form of higher interest rates. The OCR is also the key tool the ... (full story)

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Rmsmart
2 hr 41 min ago
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Ok
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Trader#CFA9
1 hr 26 min ago
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The Reserve Bank of New Zealand’s communication is like releasing a bird into the wild when it signals a hawkish hike.
Speaking as a former Chief Economist of the Bank of England, I would say that RBNZ will need to raise interest rates further and bring them toward a neutral level.
Next week, the bank should deliver a hawkish rate hike while keeping the door open for additional increases in the future.
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Trader#7D60
30 min ago
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Rate rise will happen
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