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RBNZ Preview: Why the RBNZ May Favor 75 bps so Late into the Cycle
The RBNZ have resorted to five successive 50 bps hikes after starting the tightening process with three 25 bps hikes, in a balanced attempt to cool inflation while avoiding a massive shock to the economy. chart RBNZ Minutes of the October 5th Meeting: In the last meeting, the monetary policy committee (MPC) considered 50 or 75 basis points, much like they will ahead of tomorrow’s announcement. Arguments in favor of both outcomes were discussed as some members highlighted that a larger increase in the OCR now would reduce the likelihood of a higher terminal rate further down the line. On a more dovish note, ... (full story)