Given the uncertain times facing the Reserve Bank of New Zealand, the central bank is likely to focus first on risk management needs at next week's policy meeting and raise the official cash rate by 25 basis points, says Sharon Zollner, an economist at ANZ. The OCR is still 75 basis points below the RBNZ's central estimate of neutral, she notes. With growth conditions supportive, the New Zealand dollar weaker than expected, and inflation set to sit above the band for a while yet, it is sensible for the RBNZ to get a hike under its belt, she adds. (james.glynn@wsj.com; X @JamesGlynnWSJ)
Dow Jones Newswires
RBNZ Will Likely Focus on Risk Management Equation and Hike Rate — Market Talk
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Given the uncertain times facing the Reserve Bank of New Zealand, the central bank is likely to focus first on risk management needs at next week's policy meeting and raise the official cash rate by 25 basis points, says Sharon Zollner, an economist at ANZ. The OCR is still 75 basis points below th…