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Preview of RBNZ July 2022 Monetary Policy Review
We expect the Reserve Bank to deliver a third consecutive 50 basis point increase in the Official Cash Rate at next Wednesday’s review. That’s more or less a unanimous view in the market, although pricing has flirted with the idea of a 75 basis point increase at times. It’s also in line with the path that the RBNZ projected in its May Monetary Policy Statement, which saw the OCR reach about 3.5% by the end of this year, on the way to a peak of almost 4% next year. The RBNZ’s shift in its last two reviews to larger OCR hikes and a higher expected peak came as something of a surprise, as it didn’t seem to be ... (full story)