UOB: RBNZ expected to raise interest rates by 50 basis points

On February 20, Singapore’s United Overseas Bank stated that the New Zealand Federal Reserve will announce its interest rate decision on Wednesday.

As of February 20, 19 of the 23 economists surveyed expected the RBNZ to raise the official cash rate by another 50 basis points to 4.75%, two expect a rate hike of 75 basis points to 5.0%, one expects a rate hike of 25 basis points, and one expects no change.

We expect a 50bp hike at this meeting, taking the Official Cash Rate (OCR) to a peak close to 5.5% before the RBNZ pauses its current tightening cycle.