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Preview of RBNZ May 2023 Monetary Policy Statement
In its February Monetary Policy Statement the Reserve Bank signalled a peak cash rate of 5.50% this year, with the contours of the projection most consistent with getting there in three further steps of 25 basis points. But we’ve already had signs that the RBNZ is wavering from that path, the most obvious one being the surprise 50 basis point hike at the April policy review. That decision was preceded by a speech from RBNZ Chief Economist Conway that was distinctly on the hawkish side, including the comment that: “It is unclear whether inflation expectations are falling fast enough to mean current and projected ... (full story)