Westpac economists are sticking to their market outlying view that the Reserve Bank will increase the Official Cash Rate again next month. Most economists now believe the RBNZ is 'done' with the OCR hikes, which have seen the rate rise with unprecedented speed from just 0.25% in October 2021. The Westpac economists are still sticking by their view that the RBNZ will be forced into action sooner, as soon as next month. "However, the month ahead will see some key information in the form of the June quarter CPI and labour market report," Gibbs said. Westpac economists are among a group of main bank economists that have forecast quarterly headline inflation at 0.9%, which would see annual inflation slipping to 5.9%.

Source: Stuff July 17, 2023 17:24 UTC