RBNZ'S Chief Economist Conway: The OCR is expected to peak around mid-2023 at 5.50%
|Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway said on Friday, “the OCR is expected to peak around mid-2023 at 5.50%”.
Additional quotes
“Spending by households is higher than expected.”
“As interest rates rise, I expect consumption to slow.”
“We are seeing signs that demand is beginning to soften.”
“Higher interest rates are still required to cool the economy.”
“Not aware of any changes proposed for LVR lending limits.”
Market reaction
Despite some encouraging comments from the RBNZ Chief Economist, NZD/USD remains under intense selling pressure at around 0.6145, as of writing. Disappointing New Zealand Retail Sales data and Russia-Ukraine risks continue to sap investors' confidence. The spot is down 0.26% on the day.
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