- Need to take seriously that some inflation expectation measures have ticked up
- New Zealand needs a period of very subdued spending
- Vast majority of borrowers able to services their debt at these interest rate levels
The RBNZ is striking a distinctively different tune from other central bankers lately. That’s a sign of divergence and sets up for NZ rates to be higher than almost anywhere else at this time next year. Then again, what else would you expect a guy with ‘hawk’ in his name to say.
This article was written by Adam Button at www.forexlive.com. Source