NZD/USD flows: Jumped But Capped after RBNZ

The RBNZ has decided to keep OCR at 5.5% in the May meeting but the OCR forecast in 2025 has been revised almost 25bps higher. By September 2025, the OCR forecast has been revised almost 25bps higher and around 3% by mid 2027. The revision seems to suggest the RBNZ is not looking for an imminent hike, rather OCR will be staying higher for longer. 

NZD/USD initially jumped higher but gains were partially retraced as it does not suggest an imminent hike. NZD/USD is still trading 0.48% higher at 0.6120 with session high at 0.6153.