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Orr: The risk of an RBNZ rate hike "is real"
Westpac response (in brief): • RBNZ ... was more hawkish on future prospects. • RBNZ’s projections continue to reflect the risk of further increases in the OCR in 2024. An easing cycle looks quite some time off. • RBNZ’s projections for the OCR were revised 10bp higher to a peak of 5.69% in September 2024, implying around a 75% chance of a further 25bp rate hike. • The projections imply a gradual easing of policy from the first half of 2025. • The long-run neutral OCR was adjusted up 25bp to 2.5%. • ... more tightening may be required to ensure inflation returns promptly to target NZD/USD update: ... (full story)