Forecasts for RBNZ rate hikes are being ramped higher after surging inflation report

[forex4you]

Forecasts for RBNZ rate hikes are being ramped higher after surging inflation report

<p>The <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1" class="terms__main-term">inflation</a> data is here:</p><p class="article-slot__title title top"><a href="https://www.forexlive.com/news/nz-q3-cpi-22-qq-expected-16-20221017/" rel="follow" target="_self">NZ Q3 CPI 2.2% q/q (expected 1.6%)</a></p><p>NZD/USD response:</p><p class="article-slot__title title top"><a href="https://www.forexlive.com/news/nzdusd-up-a-few-ticks-after-the-surging-inflation-report-20221017/" rel="follow" target="_self">NZD/USD up a few ticks after the surging inflation report</a></p><p>---</p><p>Analysts in New Zealand are now marking their Reserve Bank of New Zealand rate hike calls up. </p><p>ANZ:</p><ul><li>expect the RBNZ to raise the OCR 75bp in both November and February </li><li>peak of 5% (previously at 4.75%)</li><li>"domestic and core inflation pressures unexpectedly accelerated in Q3"</li></ul><p>ASB:</p><ul><li>expect a +75 basis-point hike at the 23 November meeting</li><li> forecast peak for the OCR raised to 5.25%, from 4.25%</li><li>"A self-sustaining high inflation dynamic looks like it is becoming increasingly embedded,"</li><li>"Restrictive OCR settings and a clear RBNZ focus on delivering eventual sub-3% inflation outcomes are needed."</li></ul><p>Kiwibank raised their forecast OCR peak to 4.5% from 4%:</p><ul><li>"Today's report will be like a red rag to an inflation-fighting bull" </li><li>"Stronger for longer inflation will force interest rates higher for longer than we had previously expected"</li></ul><p>NZD/USD update:</p>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: Forecasts for RBNZ rate hikes are being ramped higher after surging inflation report

forexlive.com