The new RBNZ Governor, Anna Breman, didn’t rock the boat at her inaugural meeting today. The Committee predictably left rates unchanged, while arguing that risks to the outlook remained two-sided. Although the Bank did signal an openness to hiking rates by year-end, we’re not convinced that the incoming data will warrant policy normalisation that early. Accordingly, we’re sticking to our view that the next rate hike will only come in Q2 2027.
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