Bank of New Zealand Assistant Governor Karen Silk said that the bank is more likely to wait until December to raise interest rates again. In an interview on Friday, Silk said, “Our statement is quite clear. We think interest rates will probably still need to be raised further, depending on the economic outlook. Whether it is October or December is still uncertain, but judging from the interest rate path, the latter is more likely.” According to swap market pricing, investors expect the probability that the Bank of New Zealand will raise interest rates by 25 basis points to 3% in October is about 31%. In contrast, the market has fully determined that interest rates will rise to 3% by December at the latest. Silk reiterated that the Bank of New Zealand has no predetermined policy path. “We have to think flexibly and be willing to adjust when necessary,” she said. If the data starts to send a different signal, or if the situation changes, we need to adjust accordingly.”

Bank of New Zealand Assistant Governor Karen Silk said that the bank is more likely to wait until December to raise interest rates again. In an interview on Friday, Silk said, “Our statement is quite clear. We think interest rates will probably still need to be raised further, depending on the economic outlook. Whether it is October or December is still uncertain, but judging from the interest rate path, the latter is more likely.” According to swap market pricing, investors expect the probability that the Bank of New Zealand will raise interest rates by 25 basis points to 3% in October is about 31%. In contrast, the market has fully determined that interest rates will rise to 3% by December at the latest. Silk reiterated that the Bank of New Zealand has no predetermined policy path. “We have to think flexibly and be willing to adjust when necessary,” she said. If the data starts to send a different signal, or if the situation changes, we need to adjust accordingly.”