Emerging Asia Economics Update
New Zealand to move gradually from now on
The Reserve Bank (RBNZ) earlier today lifted its cash rate by 25bp to 2.75%, as expected. The local economic upswing should continue, despite the increased external risks, but the recovery will probably be more sluggish than is usual. The cash rate looks set to move up again at the next RBNZ meeting in July but the end point for the cash rate should far lower than in previous tightening cycles.
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