Outlook for Borrowers: Post May MPS
Stuart Ritson -
The Reserve Bank of New Zealand (RBNZ) left the Official Cash Rate (OCR) unchanged at 2.25% at Wednesday’s Monetary Policy Statement (MPS). While this outcome was widely expected by economists and broadly reflected in market pricing, the decision was finely balanced. The three external members of the six-member committee voted for a 25bp hike, with Governor Breman casting the deciding vote. The Bank also noted that “the OCR will most likely need to increase sooner and by more than envisaged in the February Monetary Policy Statement.”