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May 26, 2026

Monetary Policy Expectations Analysis

Rates StrategyRates Govt BondsMacro Economic IndicatorsOther

This report provides a comprehensive breakdown of market-priced interest rate expectations across New Zealand, the US, Australia, the Eurozone, the UK, and Canada through mid-2027.

Key Takeaways

  • 1.The New Zealand Official Cash Rate (OCR) is projected to rise significantly from its current 2.25% to approximately 3.53% by August 2027.
  • 2.Market pricing for the US Federal Funds Rate indicates an expected increase to 4.02% by April 2027 from the current effective rate of 3.63%.
  • 3.Australian interest rates are expected to peak at roughly 4.59% in late 2026/early 2027, representing a more modest tightening path compared to New Zealand.

Table of Contents

  • Monetary Policy Expectations Analysis
  • Important notice

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Authors

ANZ Economics and Markets Research

Securities

Official Cash Rate (OCR)Federal Funds Rate (FFR)SONIA Rate€STRON

Themes

Monetary Policy TighteningCentral Bank Forward Pricing

Regions

Asia PacificNorth AmericaEuropeNew ZealandUnited StatesAustralia