RBNZ expected to hike rates on Wednesday- UOB

Economist at UOB Group Lee Sue Ann suggests the RBNZ would hike its policy rate by 25 bps at this week’s meeting.

Key Quotes

“We believe the New Zealand economy no longer requires the extreme monetary stimulus a 0.25% OCR provides, and that the current lockdown should not leave a discernible scar on the economic front.”

“Unless the country heads into a prolonged lockdown, a hike in October is very likely.”