Stephen Toplis: BNZ Head of Research on the 2023 Budget's affect on the OCR - Heather du Plessis-Allan Drive

The Budget's being described as the straw that will break the camel's back on pushing up the Official Cash Rate.

Bank economists are predicting bigger interest rate hikes after the release of Finance Minister Grant Robertson's annual spending programme yesterday.

BNZ Head of Research Stephen Toplis says that there were already several reasons for the Central Bank to keep lifting the OCR.

He says they were on the verge of forecasting another rate increase, but there was more stimulus in the Budget than expected, which tipped them over the edge.

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