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

The New Zealand Institute of Economic Research (NZIER, the Shadow Board, recommended that the Reserve Bank of New Zealand (RBNZ) should hike the OCR by 50 basis points in August and follow up with further tightening.

Key takeaways

The majority view was that a 50 basis points OCR increase in the August meeting is warranted, with only two members recommending a different quantum of tightening (25 basis points and 75 basis points each).

Shadow Board members highlighted the strong inflation pressures in the New Zealand economy as justification for their recommendation for further tightening over the coming year.

more to come ....