Institution: New Zealand at risk of interest rate hikes due to rhetoric.

KiwiBank's chief economist Jarrod Kerr said that the New Zealand wholesale interest rate market is currently digesting expectations of three rate hikes in October, and he forecasts that rates will increase by 130 basis points by this time next year. He said that this is very aggressive, even by the standards of the most staunchly hawkish policymakers. He added that he is acutely aware that as other bank economists call for rate hikes, this hawkish scenario may play out like a self-fulfilling prophecy, with hawkish rhetoric fueling inflation expectations.