WELLINGTON, Oct 29 (Reuters) – New Zealand central bank governor Anna Breman said on Thursday chances the bank will hike the official cash rate in December are “high”.
“What we are saying is all the committee agree that it is likely that we will see further OCR (official cash rate) increases,” Breman told the New Zealand Herald. “Timing is uncertain and it will depend on economic outlook and how inflation is evolving.”
When asked what the chances of a hike were for December, she responded: “I would say that they were high.”
The Reserve Bank of New Zealand on Wednesday surprised markets by holding the cash rate at 2.75% at its scheduled monetary policy review but flagged further hikes were likely.
The New Zealand dollar fell sharply after the decision and the market is currently pricing a 77% chance of a hike in December.
Breman added in the interview that she wanted people to understand that while they are living in uncertain times “the Reserve Bank will stay very calm and focused on our mandate and ensuring inflation returns to target.”
(Reporting by Lucy Craymer; editing by Sam Holmes)
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