Skip to main content

RBNZ will slow the pace of tightening

With the latest economic data coming in weaker than it had anticipated, the RBNZ will likely opt for a smaller 25bp hike to the official cash rate (OCR) at its upcoming meeting on April 5th. We expect only one more 25bp rate hike after that, with the OCR peaking at 5.25% in May. As a protracted downturn creates deflationary pressures, we think the RBNZ will pivot to rate cuts by year-end.

Asia Drop-In (30th Mar.): Our monthly briefing on the big regional stories is all about the recent banking turmoil, including the potential macro fallout but also where the risks lie on Asian bank balance sheets. Register now.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access