Emerging Asia Economics Update
New Zealand set for a challenging year
Today’s Q4 GDP figures confirm that New Zealand’s recovery was struggling to gain traction at the end of last year. Growth will be weak in the near term following the recent earthquakes, but we expect economic activity to surprise the Reserve Bank (RBNZ) on the upside later this year. The upshot is that the cash rate will probably be hiked sooner than markets anticipate.
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