Emerging Asia Economics Update
New Zealand’s cash rate to stay low in 2013
The Reserve Bank of New Zealand (RBNZ) kept its policy rate at 2.5% today, as was widely anticipated. Most analysts expect policy to be tightened significantly over the next two years. In contrast, we still expect New Zealand’s cash rate to be unchanged throughout 2012 and have pencilled in only one hike for 2013.
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