Emerging Asia Economics Update
New Zealand's Reserve Bank continues to wait and see
The decision by the Reserve Bank of New Zealand (RBNZ) to leave the cash rate at 3.0% for the fourth consecutive meeting was universally expected. We anticipate that the upswing will gain more traction in coming quarters and that inflation pressures will climb. Accordingly, we still forecast that the RBNZ will move the cash rate up from June, which is earlier than current market expectations.
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