ANZ’s latest measure of consumer confidence shows inflation expectations at highest level since July, 2023.
OCR expected to peak at 5% as lagged effect of interest rate increases is felt by households as they switch to higher fixed mortgage rates.
Jumbo hike of 75bp will not be the last from RBNZ, with new OCR 5.5% peak expected.
RBNZ continues to tighten at pace and expects a recession later next year.
A whopper 100bp hike was also considered by the monetary policy committee.
Philip Lowe says inflation must be temporary in order to avoid mass economic pain.
Net migration loss of 8400 people in year to September, with concern about the economic impact.
Westpac predicts 5% OCR and unemployment rising to 4.5%, in latest economic outlook.
Business survey reveals more gloom about the economic outlook.
With hindsight, central bank could have tightened monetary policy earlier in 2021, its monetary policy review found.