RBNZ: Hike is around 100% priced in by September 2018 - Westpac

Market pricing for the RBNZ has slipped with the slowdown in NZ economic momentum (Westpac’s economic data pulse index is at a three-year low) and a hike is around 100% priced in by September 2018, compared to June 2018 a month ago, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“We think the market pricing is still too optimistic. Indeed, our economists have slightly downgraded the outlook for inflation and now expect the first rate hike to be in November 2019 (from February 2019 previously).”