**As seen in Risk In The Week report 09/30/22, cablefxm.co.uk/reports
The RBNZ raised the Official Cash Rate by 50 basis points to 3.0%. The central bank moved in consensus while it stated that inflation remains ātoo highā and noted that domestic spending has remained resilient. The RBNZ now sees the Cash Rate peaking in 2Q 2023, a forward move by a quarter, they see the rate peaking at 4.1% vs. a previous projection of 3.95%. The central bank noted that domestic price pressures have increased since May while wages rise. As a result, this could have prompted discussions of a higher neutral rate.
The desk at Nomura just lifted the terminal rate forecast for the RBNZ, it now sees a 4.50%, a revision of 50bps. Nomura expects the central bank to keep a hawkish tone, they also dismiss the āhigher for longerā chatter from central banks and project rate cuts in 2023 as recessions are set to slowdown inflation.
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