The Reserve Bank of Australia hiked rates by less than most had anticipated this week, but with the economy still running red hot, we doubt that it will take its foot of the brake altogether before early next year. Meanwhile, the hawkish tone of the Reserve Bank of New Zealand is consistent with our view that rates will rise all the way to 4.5% by April. With New Zealand's households having less scope to deal with soaring mortgage payments and the housing market tanking, we're now forecasting a recession in New Zealand next year.
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