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RBNZ hiking cycle has further to run

The New Zealand economy remained hot at the end of last year. And while the Omicron outbreak may disrupt activity in Q1, we expect the impact to be short-lived. We therefore forecast the RBNZ to continue its hiking cycle with a 25bp hike at its meeting on 23rd February. And we expect the Bank to hike rates all the way to 2.0% by the middle of the year.

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