Australia & New Zealand Economics

Australia & New Zealand Economics Weekly

21 April, 2017

Turning (a bit) hawkish on New Zealand

The period of ultra-low inflation in New Zealand is well and truly over. While we still believe that the financial markets are too hawkish in expecting the official cash rate to start rising this year, the recent strengthening in underlying price pressures implies that the Reserve Bank of New Zealand’s projections are too dovish as they don’t have rates rising until very late in 2019.

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