Interest Rate Strategy

Outlook for Borrowers: Post February MPS

Stuart Ritson -

The Reserve Bank of New Zealand (RBNZ) held the Official Cash Rate (OCR) steady as expected, at 5.5%, at the February Monetary Policy Statement (MPS). The Bank, although remaining hawkish, eased its rhetoric from the previous MPS in November. A mild tightening bias was retained but Monetary Policy Committee (MPC) members noted that overall, risks to the outlook for inflation were more balanced than at the time of the November 2023 Statement.

Update on syndication of May 2054 nominal NZGB

Stuart Ritson -

New Zealand Debt Management (NZDM) announced, alongside the Pre-election Economic and Fiscal Update (PREFU) in September, that a new 15 May 2054 nominal maturity will be syndicated this fiscal year. There was a further update in the monthly tender schedule, released on Wednesday, that the new 30-year bond will be launched, via syndication, in the March 2024 quarter.

Full Interest Rate Research is available to BNZ Wholesale clients upon request, please email bnz_research@bnz.co.nz to subscribe.