NZ Monetary Policy Shadow Board Recommends OCR Hike in September
New Zealand's Monetary Policy Shadow Board has given its latest recommendation to the Reserve Bank of New Zealand (RBNZ), calling for another OCR hike in September. Just over half of the Shadow Board members, who are experts in economics and finance, recommend a 25-basis-point increase to bring the OCR to 2.75 percent.
This reflects their view that the OCR needs to continue on its path of returning to neutral levels, given that inflation remains high. However, some members consider it appropriate for the RBNZ to keep the OCR at 2.50 percent due to subdued economic activity and low inflation expectations measures.
The recommendation comes as other central banks are also expected to hike rates in September, including the European Central Bank which raised rates by 25 basis points in June.