RBNZ: Swimming with or against the tide - ANZ

Research Team at ANZ, suggests that swimming with or against the tide, that’s the big decision facing the RBNZ this week.

Key Quotes

“The local economy may not ‘need’ cuts, but equally, glaring differences between NZ’s and global interest rates are causing a currency bubble and an inflation vacuum – the latter going against the grain of everything the RBNZ stands for (at least for now – in what feels like the twilight of inflation targeting as we currently know it). Low interest rates and low inflation have been brought upon NZ by the world (not RBNZ policy), so spare a thought for the Governor as he contemplates throwing in the towel, so to speak.”