Change of OCR Forecast

Westpac has updated its economic forecast, predicting the Reserve Bank of New Zealand (RBNZ) will aggressively hike the OCR in 2027 to reach a terminal rate of 4.25% by early 2028.

Key Takeaways

• 1.Westpac has revised its forecast for the RBNZ tightening cycle, predicting a much faster pace of hikes in 2027.
• 2.The Official Cash Rate (OCR) is now expected to reach 4% by the end of 2027 and peak at 4.25% in early 2028.
• 3.The first hike is still forecasted for December 2026, reaching 2.50%, as the RBNZ waits for the recovery to take hold.

Table of Contents

• RBNZ to hike more quickly in 2027
• Picking up speed.
• Contact
• Disclaimer
• Things you should know.
• Additional country disclosures:

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