NZIER split on interest rates due to inflation and housing market concerns

Summarised by Centrist

An analysis of NZ’s current economic conditions has most members of the NZIER Shadow Board recommend keeping New Zealand’s Official Cash Rate (OCR) unchanged at 5.50 percent in the upcoming Monetary Policy Statement, while one member suggests a 25 basis point increase due to elevated inflation expectations and core inflation. 

Looking forward a year, the think tank speculates the OCR to be between 4.5% and 5.75% (core view of 5.5%). 

Factors considered regarding whether or not more hikes may be necessary in 2024 include inflation and labour market conditions. 

Read more over at NZIER