RBNZ Governor Breman Says December Rate Hike Chances "High" After Surprise Hold

Reserve Bank of New Zealand Governor Anna Breman said Thursday the chances of an official cash rate hike in December are "high," after the central bank surprised markets by holding the rate at 2.75% at its scheduled monetary policy review on Wednesday. "What we are saying is all the committee agree that it is likely that we will see further OCR increases," Breman told the New Zealand Herald, adding that timing is uncertain and will depend on the economic outlook and how inflation evolves. The New Zealand dollar fell sharply after Wednesday's decision. Markets are currently pricing a 77% chance of a hike in December. Breman said the central bank will "stay very calm and focused on our mandate and ensuring inflation returns to target" amid uncertain times.