The Reserve Bank of New Zealand (RBNZ) is expected to keep the Official Cash Rate (OCR) on hold at its first monetary policy decision of 2021 next week, as the economy stages a swift turnaround from the coronavirus crisis, the latest Reuters poll of economists showed.
Key findings
“All 12 economists concluded that the Reserve Bank of New Zealand (RBNZ) will stand pat on Wednesday, and will continue to keep the official cash rate (OCR) at the historic low of 0.25% for the rest of the year.”
“Three economists expect rates to be hiked by the end of next year, while others see the RBNZ holding through the forecast period until the fourth quarter of 2022. Westpac Bank says it sees the first hike only in 2024.”
“RBNZ may revise up its forecasts for growth, employment and inflation, and add a forward guidance for the OCR, but stress that hikes remain a long way off and potentially even putting a date on it.”
“It also expects the timeframe of the Large Scale Asset Purchase (LSAP), or quantitative easing, programme to be extended to the end of 2022.”
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