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February 16, 2026

Monetary Policy Expectations Analysis

Market ReportMacro Economic IndicatorsRates Govt BondsFinancials

This ANZ Research report provides market-priced interest rate expectations for New Zealand, USA, Australia, Eurozone, UK, and Canada through early 2027.

Key Takeaways

  • 1.New Zealand's Official Cash Rate (OCR) is priced for steady increases, moving from a current 2.25% to an expected 3.10% by May 2027.
  • 2.The US Federal Funds Rate is expected to decline significantly, with market pricing suggesting a drop from the current 3.64% to 2.98% by early 2027.
  • 3.Australia's policy rate is expected to rise from 3.85% toward 4.22% by late 2026, showing a divergence from northern hemisphere rate trends.

Table of Contents

  • Monetary Policy Expectations Analysis
  • Important notice

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Authors

ANZ Economics and Markets Research

Securities

Official Cash Rate (OCR)Effective Federal Funds Rate (FFR)Sterling Overnight Index Average (SONIA)Euro Short-Term Rate (€STRON)

Themes

Interest Rate NormalizationMonetary Policy Divergence

Regions

Asia PacificNorth AmericaEuropeNew ZealandUnited StatesAustralia