ANZ Expects RBNZ to Prioritize Risk Management and Raise Rates by 25 Basis Points

ANZ economist Sharon Zollner said the Reserve Bank of New Zealand may focus first on risk-management considerations at next week’s policy meeting and raise the official cash rate by 25 basis points. According to Jin10, Zollner said the official cash rate remained 75 basis points below the RBNZ’s central estimate of the neutral rate. She added that a rate increase would be a prudent move given a supportive economic backdrop, a New Zealand dollar that was weaker than expected, and inflation that was expected to stay above the target range for some time.