Westpac expects the RBNZ to raise rates again this week, citing significant
upside inflation risks versus the central bank’s prior forecasts and leaving
scope for further tightening. Westpac forecasts another 25bps in December and a
further hike in February next year that would lift the official cash rate to
3.5%, roughly the RBNZ’s estimate of neutral. Westpac expects the RBNZ to slow
the pace of hikes thereafter.
