Reserve Bank of New Zealand Governor suggested this meeting may bring a 25bp
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RBNZ rate meeting - 05/04 – the RBNZ has been one of the more aggressive central banks when it comes to raising rates.
RBNZ governor Adrian Orr suggested that while further rate hikes were likely, that another downshift to 25bps could come at the April meeting
At its last meeting in February the central bank hiked by 50bps pushing the headline rate to 4.75%. RBNZ governor Adrian Orr suggested that while further rate hikes were likely, that another downshift to 25bps could come at the April meeting. Unlike other central banks Orr was at pains to suggest that the RBNZ had more room to be flexible when it comes to further tightening, suggesting that perhaps a pause might also be an option in light of recent turmoil on financial markets. Inflation is expected to peak at 7.3% in Q1 and drop to 6.6% in Q2.
