New Zealand Raises Official Cash Rate to 3%

The transcript discusses the current state of inflation and interest rate projections, highlighting that inflation remains high with rates expected to peak at 4.1%. Economists predict further rate hikes, and the Reserve Bank of New Zealand (RBNZ) is expected to continue tightening. The Federal Reserve's stance is also examined, with no immediate pivot expected despite market hopes. Jay Powell's comments suggest continued rate hikes, with the Fed's neutral rate possibly higher than previously thought. The overall message is that both the RBNZ and Fed are focused on controlling inflation before considering any policy shifts.

What inflation rate do economists forecast for the second quarter?

What is the projected peak rate mentioned in the text?

What did Jay Powell say about the possibility of a pivot?

What is the significance of the 'dots' from the last meeting?

What conditions must be met for the Fed to consider a pivot?