Breaking: RBNZ hikes rates by 25 bps to 5.50% in May, as widely expected

Sees official cash rate at 5.5% in September 2023 (pvs 5.43%).

Sees official cash rate at 5.5% in June 2024 (pvs 5.5%).

Sees twi nzd at around 71.5% in June 2024 (pvs 71.5%).

Sees annual CPI 3.7% by June 2024 (pvs 3.6%).

Sees official cash rate at 5.43% in September 2024 (pvs 5.44%).

Sees official cash rate at 3.31% in June 2026.

Sees cash rate peak at 5.5%.

Sees march quarter GDP at +0.3% .

Forecasts negative GDP growth for Q2, Q3 in 2023.

Level of interest rates constraining spending and inflation.

Interest rates will need to remain at restrictive level for forseeable future.

Global growth remains weak, inflation pressures are easing.

In New Zealand inflation is expected to continue to decline from peak.

Core inflation pressures will remain until capacity constraints ease further.

OCR set to remain restrictive .

Businesses reporting slower demand for goods and services.

Raising the OCR to 5.50% is consistent with the projections.

Reached a consensus that interest rates will need to remain at a restrictive level for the foreseeable future.

By a majority of five votes to two, the committee agreed to increase the OCR by 25 basis points.