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The Reserve Bank of New Zealand have noted that a risk to their intention to hike rates ahead is the coronavirus.
The 94 cases today will provide some thought on how it will impact the RBNZ, 94 is a record dally new case count. I’d suggest, at this stage, not much. My reasoning is vaccinations are coming along well in New Zealand and experience elsewhere has shown a high vaccination rate reduces the severity of the load on the health system (fewer hospitalisations, ICU admissions and deaths … ps. not zero, but far, far fewer.) And thus, as the vax rate rises the restrictions in the economy lessen.
NZ’s largest city, Auckland, remains in a harsh level 3 lockdown.
The next RBNZ monetary policy meeting is November 24. I suspect another 25bp rate hike is on their agenda. Soon to be installed new Dep Gov Hawkesby said in comments a couple of weeks ago that 50bp rate hikes were off the table given the uncertainty of the health environment.