RBNZ Set for Another Rate Hike as NZIER Shadow Board Backs 25bp Increase

New Zealand's central bank is set to raise its benchmark interest rate again this week, according to the NZIER Shadow Board. Just over half of its members recommend a 25 basis point increase to 2.75 percent at the Reserve Bank of New Zealand's Monetary Policy Statement on September 2.

The RBNZ has already resumed tightening this cycle, lifting the OCR to 2.50 percent in July as it works to bring inflation back toward its 1 to 3 percent target range.

Looking further out, Shadow Board members were broadly aligned that the OCR should keep climbing over the coming year, with individual views clustering between 3 and 3.25 percent.