The Reserve Bank of New Zealand (RBNZ) hiked interest rates by 50 basis points to 4.75%. Economists at TD Securities now forecast a 5.50% peak by July. 

5.50% Terminal

“The RBNZ retained its focus on the medium-term outlook and hiked its cash rate 50 bps as expected, but a 75 bps hike was considered as the alternative option.”

“Our new call has us forecasting the RBNZ hiking the OCR an additional 50 bps, in 25 bps clips at its May and July meetings, taking terminal to 5.50%.”