RBNZ’s tightening bias is on its last legs

We expect the RBNZ to leave rates on hold for a seventh consecutive time at its meeting next Wednesday. To be sure, the Bank will probably strike a hawkish tone out of an abundance of caution. However, with the economy in tatters and inflation on its way back to the RBNZ’s 1-3% target, we still expect a pivot to policy easing by year-end.

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