BNZ tips New Zealand inflation to blow past RBNZ's own forecast
From the original
An inflation print above the RBNZ's 3.9% projection would strengthen the case for further tightening, reinforcing the higher-for-longer rates narrative already building in NZ swap and bond markets. Traders will watch the core measures as closely as the headline figure, given thei
Related speeches
4 itemsPreview: Inflation and growth strength point to further RBNZ tightening, BNZ says
NZ inflation jumps to 4.1% in Q2, beating forecasts and RBNZ's own estimate, with more to come!
RBNZ preview: A 25bp hike, with some dovish risks
The Reserve Bank of New Zealand (RBNZ) is expected to raise its overnight cash rate by 25bps to 2.75% on September 2, 2026, a move that aligns with prevailing forecasts. However, as highlighted in the note from ING, the market anticipates a more aggressive tightening path than the RBNZ's own projections, indicating potential dovish risks that may impact the NZD. Recent inflation data, which showed a consumer price index (CPI) uptick to 4.1%, below the RBNZ's expectations, further complicates the landscape. This backdrop suggests that while a hike is widely expected, the central bank's commitment to continued tightening may face challenges ahead, particularly as markets have already priced in a tighter monetary policy by 2027 [source].
More like this
5 itemsBoE’s Greene warns waiting for second-round inflation effects would be too late
PBOC sets USD/ CNY central rate at 6.7298 (vs. estimate at 6.6981), strongest since 2 February 2023
RBA minutes show three reasons for hike to 4.60% and leave door open to further increases
PBOC is expected to set the USD/CNY reference rate at 6.6981 – Reuters estimate