Our ANZ Chart Pack has been updated with the latest data and our analysis of recent developments.
Inflation will rise well above target in both Australia and New Zealand as a result of the oil price shock. The RBA will respond by moving policy into restrictive territory, given the overheating economy and the risk of inflation expectations becoming unanchored. We expect it to hike rates beyond its post-pandemic peak, to 4.60% in Q3. In contrast, the RBNZ won’t begin unwinding policy accommodation until Q4, as the economy remains in a state of excess capacity.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
