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Housing downturn will lead to RBNZ rate cuts in 2023

While the strength in New Zealand’s economy will cause the RBNZ to hike rates further this year, we think the RBNZ will end its hiking cycle earlier than the financial markets anticipate. What’s more, we think a housing downturn in 2022 will weigh on the economy at the same time as inflation is easing and the labour market is loosening. On that basis we expect the RBNZ to cut rates in 2023.  
Ben Udy Australia and New Zealand Economist
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