Emerging Asia Economics Update
New Zealand still on track for mid-year hike
The Reserve Bank of New Zealand (RBNZ) as expected left its cash rate unchanged at 2.5% overnight and, crucially, retained its commitment to start lifting rates from around the middle of 2010. The economic recovery is set to remain sluggish while inflation is unlikely to become an issue any time soon. We expect a first cash rate hike in July and then only a gradual monetary tightening.
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