According to the latest Reuters poll of economists, the Reserve Bank of New Zealand (RBNZ) is widely expected to hike the Official Cash Rate (OCR) by 50 basis points(bps) at Wednesday's policy review, taking the cash rate to 3.00% and marking the most aggressive tightening since 1999.

Also read: NZIER: Recommends RBNZ to hike OCR by 50 bps in August

Key findings

“While the RBNZ has signalled plans to increase the rate to 4.00% by mid-2023, almost matching the US Federal Reserve, few see it reaching that level. “

“A handful were actually expecting rates to start easing by mid-next year.”

“That shift in market pricing has been driven by signs of a weakening economy amid the tightening in financial conditions.”