The Reserve Bank of New Zealand (RBNZ) announces its survey of expectations business February 2022, citing that the “Official Cash Rate (OCR) expectations continue to rise in the short and medium-term.”
Read: RBNZ Survey: NZ inflation expectations jump in Q1, Kiwi unfazed
Additional takeaways
Feb 2022 survey of expectations found business’ OCR expectations continued to rise in the short, medium and long term.
In medium term OCR was expected to continue rising though there was significant variation on size of those increases.
Mean OCR expectation for end of current quarter was 1.05 showing that most respondents expected to see single rate hike from current level of 0.75.
The mean estimate for the OCR one year ahead was 2.11.
Mean two year ahead OCR expectations were higher at 2.47.
The mean OCR expectation for ten years increased by 30 basis points to 2.37.
Market reaction
NZD/USD was last seen changing hands at 0.6660, down 0.13% on the day.
