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11 Jul 2017
RBNZ hike is 100% priced in by June 2018 - Westpac
Market pricing for the RBNZ has risen with the rise in bond yields offshore and a hike is 100% priced in by June 2018, compared to August 2018 a few weeks ago, according to Imre Speizer, Research Analyst at Westpac.
Key Quotes
“That said, we still think the OCR should remain on hold for some time yet and are not forecasting a rise through 2017 or 2018. While we are seeing some positive signs in terms of economic activity, monetary policy is still playing an essential role in terms of supporting demand.”
“In addition, while inflation has firmed, it’s not at alarming levels, and continued monetary stimulus will be required to ensure it remains around the RBNZ’s target mid-point over the longer term.”