There was a time when the run-up to a Reserve Bank (RBNZ) Official Cash Rate review prompted debate about whether the rate would be increased, stay the same, or indeed be reduced. The RBNZ therefore has to set a future OCR 'track' that will keep the right sort of tension in the interest rate markets. And then in its last OCR review on October 5, the RBNZ explicitly stated that it had seriously considered raising the rate by 75 points. My question then is, will it be enough for the RBNZ to hike the OCR on Wednesday by the 'expected' amount? Perhaps the most classic example of that was the shock 50-point cut to the OCR made in August 2019, which caught the wholesale interest rate markets and the Kiwi dollar on the hop.

Source: Stuff November 19, 2022 19:43 UTC