How high will it go? Reserve Bank likely to hike OCR again today

Economists are picking the Reserve Bank will lift the official cash rate today by 25 basis points - taking it to 5 per cent.

The decision due to be announced at 2pm will follow global banking meltdowns, international turmoil and data showing GDP slumped in the December quarter.

Pundits broadly agree there will be a pullback from the 50 basis point hike forecast after the last Monetary Policy Statement in February - and that the peak for rate hikes will now be 5.25 per cent, rather than the 5.5 per cent previously expected.

Today’s decision is a briefer Monetary Policy Review, as opposed to a full Monetary Policy Statement.

That means the RBNZ and Governor Adrian Orr will likely give less away in terms of the overall economic outlook.

Economists this week told the Herald a 25 basis point increase was most likely.

Yesterday, the Reserve Bank of Australia paused interest rate hikes, leaving its official cash rate at 3.6 per cent.

That decision followed consecutive interest rate rises across the Tasman since May last year.