Emerging Asia Economics Update
RBNZ to resume tightening by year-end
As expected, the Reserve Bank of New Zealand (RBNZ) left its policy rate on hold at 2.5% today, after cutting by 50bp last month in response to the Christchurch earthquakes. Admittedly, the RBNZ will be in no rush to reverse that move. However, unlike the consensus, we expect the RBNZ to resume tightening later this year as economic growth picks up again.
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