According to Goldman Sachs’ chief New Zealand economist Andrew Boak, the Reserve Bank of New Zealand is set to increase the Overnight Cash Rate (OCR) at 2% beginning in February of 2019.
Key quotes
“We view the rise in New Zealand inflation as consistent with New Zealand’s late-cycle growth story – featuring a positive output gap, full employment, rising wages, and the weaker NZ dollar.
there is little case for a near-term rate hike, we believe the market is underestimating the probability of a rate hike in [the first half of 2019.]”
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