Forex
Home›Forex›Central Banks›RBNZ set for back-to-back rate hike to 2.75%
RBNZ set for back-to-back rate hike to 2.75%
The NZD is expected to swing around the RBNZ decision as markets weigh guidance on whether further hikes in October are likely, with inflation above target and unemployment rising.
FXStreet says the Reserve Bank of New Zealand is expected to deliver a follow-through interest rate hike on Wednesday, raising the Official Cash Rate by 25 basis points to 2.75% from 2.50%.
The decision is scheduled for 02:00 GMT and will be accompanied by the Monetary Policy Review, the Monetary Policy Statement, and meeting minutes, followed by Governor Anna Breman’s press conference at 03:00 GMT, with FX volatility likely to center on the RBNZ’s signals for the monetary policy outlook.
Strategists cited by FXStreet say the backdrop supports a hawkish stance, including June-quarter headline inflation of 4.1% year-on-year versus a 3.9% forecast, while labor conditions remain soft, with the unemployment rate rising to 5.6%.
FXStreet also notes traders will closely monitor updated RBNZ projections, particularly the scope and timing of additional tightening beyond the September meeting, since any shift in the likelihood of October hikes or the projected terminal OCR could move the New Zealand dollar versus the US dollar.