Kiwi’s Yet To See Higher Rates Thanks To Migration?

The Reserve Bank’s Monetary Policy Committee held the Official Cash Rate at 5.5% Wednesday in Wellington. This was as expected by most economists. But the central bank has been spooked by stronger near-term growth that’s being driven by the return of international students and immigrants after the pandemic. As a result, there was a significant surprise, raising its forecasts for the OCR — implying a greater chance of an increase — and predicting no reduction until mid-2025. This was the final policy meeting of the year and said it will hike them in 2024 if inflation doesn’t decelerate fast enough. […]