SINGAPORE, July 6 (Reuters) - Analysts at New Zealand bank ASB have brought forward rate hike expectations from 2022 and now think the Reserve Bank of New Zealand will start raising the benchmark cash rate from November 2021, following a strong business survey on Tuesday.
"The inflation and demand gauges in the NZIER's Quarterly Survey of Business Opinion are so strong that it is increasingly clear that the RBNZ cannot afford to wait much longer," ASB chief economist Nick Tuffley said in a research note. "We now expect the RBNZ to start lifting the OCR from November 2021."
Rates markets have also shifted, with overnight index swaps NZDDOIS= moving higher after the survey to imply around a 76% chance of a hike in November.
