Reserve Bank of New Zealand Done Raising Interest Rates
Dow Jones06:36
2232 GMT [Dow Jones]--New Zealand's central bank is done raising the official cash rate after hiking by 25 basis points to 2.75% yesterday, contends Citi. This outlook is based on Citi's neutral rate estimate of 2.5-2.75%, below the Reserve Bank of New Zealand's projection of 3% or higher. "We expect slowing activity indicators to prevent further hikes, as the ongoing negative output gap is incongruent with additional tightening," Citi says. "While risks are skewed toward more hikes, we believe market pricing for the OCR over the next 6-12 months remains too high."
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