Australia & New Zealand Economics

Australia & New Zealand Economic Outlook

1 August, 2016

Rates to reach new record lows

We believe that a new era of stubbornly low underlying inflation will prompt policymakers to cut interest rates in Australia from 1.75% now to 1.00% next year and to reduce rates in New Zealand from 2.25% to 1.50%. The problem is that hardly any inflation is being imported from overseas and there is very little price pressure in each economy’s domestic labour market. Underlying inflation in Australia may stay below the 2-3% target range for three years and in New Zealand it could stay close

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon
We use cookies to ensure you get the best experience on our website. Read our Cookie Policy for more information.