Toplis also believes the Reserve Bank should lower its expected terminal rate by 25 basis points to around 5.25%. We have long said market pricing on the day could be the deciding factor for the Reserve Bank given the line-ball nature of the decision. Current market pricing is headed toward 50…We remain in the camp that says the Reserve Bank should now be moderating the pace of increase. The Reserve Bank has its foot firmly planted on the brake. However, we remain of the view that the ultimate peak may be as low as 5.0% rather than the 5.5% the Reserve Bank currently forecasts and the market currently is giving a nod to.

Source: New Zealand Herald February 16, 2023 23:15 UTC