BNZ Biz Bites – Interest rates – where to from here?
Please join BNZs Markets interest rate Specialist – Phil Townsend.
When will interest rates stop going up?
- The RBNZ again raised the OCR by 50bps, to 3%, at the August MPS, as expected.
- This cycle started from an OCR at 0.25% Sept 2021
- The RBNZ signalled it expects to tighten further, with another 50bps hike likely in October, 50bps in December and a projected peak in the cash rate just above 4%
- Most banks have OCR forecast peaking around 4% by the end of the year. By then, thoughts are the economy should be showing clear signs of slowing and inflation should be on the way down, although it is likely to be some time before it is back within the RBNZ’s 1-3% target range.
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