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RBNZ confirms hiking cycle to be followed by cuts

The RBNZ sounded hawkish when it hiked rates by 50bp today, and we now think rates will rise to 3.5% by the end of this year. But the Bank endorsed our long-held non-consensus view that rate cuts will be required in the years ahead. We think the Bank will begin cutting rates from the second half of next year.
Ben Udy Australia and New Zealand Economist
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