Flash: OCR at 5.0% in late 2015 in New Zealand – BNZ

FXStreet (Edinburgh) - Markets Strategist Kymberly Martin at BNZ – NAB expects the normalization of the interest rates to take the OCR to 5% at the end of 2015.

Key Quotes

“The RBNZ is set to lead the global process of ‘normalising’ interest rates, with a 25bps rate hike on Thursday”.

“Late last week we upgraded our forecast peak in the OCR for late 2015, to 5.00%. This formalises the upside risk to our previous forecast of 4.50% that we had highlighted for some time”.

“We now see CPI breaching the top of the RBNZ’s 1-3% target band by early 2016, necessitating a more assertive policy response”.