Bank to say it's done enough on official cash rate hikes - but it hasn't.

[kiwi2007]

Economists are warning the official cash rate (OCR) will need to be hiked again, with banks revising their previous forecasts.

It comes after the Reserve Bank's (RBNZ) last meeting in July, where the cash rate was left unchanged at 5.5 percent - the first pause in the tightening cycle since 2021.

That decision came amid softening inflation and subsequent forecasts said the OCR would sit at that level for a while, with the central bank believing it had done enough to dampen demand in the economy and cool inflation - which has dropped to 6 percent from its 7.3 percent peak.

But ANZ chief economist Sharon Zollner told AM she believes the RBNZ will need to lift the OCR to 5.75 percent at its November review.

ANZ's forecasts were in line with Westpac's economic overview from Thursday, with the latter saying it also expected a final 25 basis point rise later this year.................etc....

https://www.newshub.co.nz/home/money/2023/08/very-valid-for-reserve-bank-to-say-it-s-done-enough-on-official-cash-rate-hikes-but-it-hasn-t-economist-sharon-zollner.html