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Economic Bulletin: Hawks, doves, and kiwis
The RBNZ has had a tough balancing act to manage in recent months. Core inflation pressures –especially those related to domestic prices – remain elevated two years after the start of the interest rate hiking cycle. In addition, economic activity and net migration have exceeded the RBNZ’s expectations and the housing market is stirring. But at the same time, we are seeing mounting evidence that growth is turning down, there’s been softness in some key overseas markets, and longer-term interest rates have pushed higher both in New Zealand and abroad. With arguments on both sides, the Westpac Economics team has ... (full story)