Emerging Asia Economics Update
New Zealand’s “insurance cut” to be reversed in September
The Reserve Bank of New Zealand (RBNZ) has signalled that its policy rate will soon be raised from a post-earthquake emergency level, provided its worst fears for the global economy do not materialise. We now expect the RBNZ’s cash rate to be hiked by 50bp to 3.0% at the next meeting in September, which would be a little sooner than our previous forecast of a move up in October.
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