RBNZ May Put Rate Hike on Hold Until December

New Zealand's Reserve Bank has raised interest rates for a second straight meeting, but according to Assistant Governor Karen Silk, it may wait until December to hike again. The Official Cash Rate was increased by the RBNZ this week, with Governor Anna Breman stating that there will likely be another increase, but policymakers want to assess the impact of previous rate hikes first.

The tone of the Reserve Bank's statement led investors to downplay the chance of a rate hike at the next meeting in October and instead price in an increase for December. This suggests that the market is anticipating a wait-and-see approach from the central bank before making further moves.