-
NZ Weekly Commentary: Now is not the time for rate cuts
The RBNZ poured ice water over the emerging market trend to price in OCR cuts in 2024. Rather, the RBNZ lifted their forecasts for interest rates reflecting increased concern on the demand impact of strong net migration, sticky core inflation and the future fiscal stance. RBNZ meetings next year are now live in terms of the potential for increased interest rates. Data on core inflation, growth, migration, house prices and the future fiscal stance will be key in determining if the OCR remains at 5.5% or rises further in 2024. As widely expected, the RBNZ left the OCR at 5.5% at its final policy review for this year. ... (full story)