NZ Inflation Hits Two-Year High Amid Interest Rate Hike Bets

New Zealand's inflation rate has reached its highest level in two years, prompting some banks to predict further interest rate hikes. According to data released recently, the country's consumer price index (CPI) rose by a significant margin, contributing to speculation about upcoming moves from the Reserve Bank of New Zealand.

The bank's Official Cash Rate (OCR) has already been increased this year, and some analysts believe that additional increases may be necessary to control inflation. The OCR is currently at 3.5%, and while there are no specific predictions for future rates, some banks are warning of potential hikes ahead.

Meanwhile, the Swiss National Bank (SNB) has signaled that it will keep interest rates at zero until the end of 2027, based on current forecasts for inflation and assuming no major new shocks. This move is likely to support the Euro in its ongoing battle against the Dollar.