New Zealand Central Bank May Raise Rates Earlier Than Expected, Economist Says

Westpac New Zealand's Chief Economist has indicated that the Reserve Bank of New Zealand might increase interest rates in September, rather than the previously anticipated December. According to Jin10, the economist noted in a report that although the central bank maintained rates as widely expected, its commentary was notably hawkish, highlighting significant concerns over rising second-round inflation pressures. The economist added that if evidence emerges of accumulating second-round inflation effects, the risk balance would favor an earlier rate hike than September. Westpac has adjusted its forecast, now expecting the Reserve Bank of New Zealand to begin a series of 25 basis point hikes at each meeting starting in September.