ING Expects RBNZ 25bp Hike in July to 2.50% Despite Oil Drop
ING strategist Francesco Pesole forecasts the Reserve Bank of New Zealand will deliver a 25-basis-point insurance hike in July, raising the policy rate to 2.50%.
NZDUSD
ING's Francesco Pesole expects the Reserve Bank of New Zealand (RBNZ) to deliver a 25-basis-point 'insurance' hike in July, taking the official cash rate to 2.50%. The forecast comes despite a sharp drop in oil prices, which typically reduces inflation pressures.
Pesole's call suggests the RBNZ remains focused on preemptively tightening policy to manage inflation expectations, even as global commodity prices ease. The move would mark a continuation of the central bank's tightening cycle.
Source: FXStreet Forex News