NZD – The New Zealand dollar perked up on Wednesday after the RBNZ raised interest rates as expected and doubled down on its resolve to contain runaway inflation.
Commenting on the meeting, Westpac noted: “The consideration of a 75 by move – given it could reduce the risk of a higher peak in the overall OCR cycle – suggests the RBNZ is now eyeing a considerably higher peak than the 4.1% from its August projections… We recently revised up our OCR forecast to a peak of 4.5% by next February.”
Commenting on the meeting, Westpac noted: “The consideration of a 75 by move – given it could reduce the risk of a higher peak in the overall OCR cycle – suggests the RBNZ is now eyeing a considerably higher peak than the 4.1% from its August projections… We recently revised up our OCR forecast to a peak of 4.5% by next February.”