Interest rate hawks squawk loudly

TD Securities has joined ANZ Bank in tipping that the Reserve Bank of New Zealand will hike the official cash rate (OCR) at its Wednesday monetary policy meeting.

TD cite last week’s Q1 Household Inflation Expectations data, claiming that the rise in 2-year and 5-year expectations is too difficult for the Reserve Bank to ignore.

Financial markets have also ascribed just under a 30% chance that the Reserve Bank of New Zealand will hike rates on Wednesday (chart from Justin Fabo at Antipodean Macro):

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.