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Subdued data won’t faze the Bank

New Zealand has probably experienced a second technical recession over the past couple of quarters. Even so, the labour market continues to recover and inflation is in good shape. So the Bank shouldn’t feel the need to deliver more stimulus. We expect the RBNZ to keep policy settings unchanged at its meeting on Wednesday 14th April. And given the solid rebound in activity and in the labour market that we think lies ahead, we expect the RBNZ to hike rates next year.

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