The unusually low rates of underlying inflation in both Australia and New Zealand will remain a thorn in the side of policymakers for a number of years yet. This explains why we believe that the Reserve Banks of Australia and New Zealand will both cut interest rates further than the financial markets expect, to lows of 1.00% and 1.75% respectively.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services