Economists lean towards OCR hike next month

Data released last week revealed that inflation has soared to a ten-year annual high of 3.3%, with cost increases across housing, transport, food and construction.

With unemployment low and the economy running hot, economists at Kiwibank believe the Reserve Bank's Monetary Policy Committee and governor Adrian Orr (pictured) should take action. 

"The next move is almost certainly a rate hike," the team said. "The 'least regrets' stance is firmly favoured. We now expect the RBNZ to lift the cash rate in August (a little over four weeks from now), in what will be the first of at least three hikes from here.

"We’re likely to see two hikes by year end, and a push to 1% by February."