RBNZ to continue its shift toward a less accommodative monetary policy – Wells Fargo By MSalordFX RBNZ Banks
. A 25bp rate hike is expected. Analysts at Wells Fargo see a 25bp rate hike as opposed to a 50bps hike considering the governor of the bank spoke about a cautious approach to tightening. another 25 bps to 1.00%. After the economy slumped in Q3 due to a COVID-related lockdown, incoming data show a solid rebound from Q4 last year, as reflected in employment and retail spending data. Meanwhile, inflation pressures have also intensified, as the Q4 headline CPI firmed to 5.
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