Westpac Banking Corporation Expects RBNZ to Raise Rates 25 Basis Points

According to Jin10, Westpac Banking Corporation expects the Reserve Bank of New Zealand to raise rates by 25 basis points to 2.75% on September 2, in line with market expectations. The bank said the RBNZ's policy projections are likely to signal a year-end rate of 3%, with a peak near 3.3%, and that any move in October will depend on economic data. Westpac said the chance of a hawkish surprise, a higher neutral-rate assumption, or a clearer signal of consecutive rate hikes in October and December is only 10% to 15%, while the chance of a dovish surprise implying a pause before December is also 10% to 15%, leaving the risks around the base case broadly symmetrical.