The RBNZ hiked by 50bp – but a 75bp hike was considered

From cityindex.com

The RBNZ hiked interest rates by 50bp to 3.5%. It’s the eighth consecutive hike this cycle totalling 325bp – and five of the last eight have been in 50bp increments. And if that’s not enough to wet your whistle, they also discussed a potential 75ph hike. One school of thought assumed a higher hike today could mean a lower terminal rate further out, whilst another placed greater emphasis on the degree of hikes had already made, alongside the lag policy has on the economy and the slow pass-through rate for retail interest rates. Against that backdrop, 75bp increments further out seem unlikely. Furthermore, ... (full story)