OCR Announcement: Will the RBNZ Change Its Interest Rate Plans?

PHOTO: The Reserve Bank of New Zealand (RBNZ). FILE

The Reserve Bank of New Zealand (RBNZ) is facing diminishing pressure to raise the Official Cash Rate (OCR) further. Economists widely anticipate that the OCR will remain steady at 5.5%, reflecting a consensus that the bank is likely to hold off on additional rate hikes. This sentiment is underscored by the observation that the pressure on RBNZ to increase the OCR is waning rapidly, signaling a potential stabilization in the interest rate.

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This expectation is rooted in the recent decision by the Monetary Policy Committee on October 4, 2023, to maintain the OCR at 5.5%[2][4]. The next update is scheduled for November 29, 2023, but economists are already expressing confidence that the rate will remain unchanged.