RBNZ meeting preview: Let the hiking begin

From think.ing.com

The New Zealand economy has been on a very solid recovery path in 2021 after having faced a double-dip recession in 2020. As of now, most indicators suggest that the Kiwi economy is no longer suffering from the negative impact of the pandemic, as shown in the table below, and is instead facing above-target inflation like many other countries. table The release of 2Q employment data were, in our view, the last piece of data the RBNZ needed to start its hiking cycle. With unemployment dropping to where it was before the pandemic hit (4.0%), there is a rising risk that inflationary pressures may be more persistent ... (full story)