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VIEW: ASB: Inflation Pressures Hit Rapid Boil

RBNZ

ASB note that "the Q2 NZIER Quarterly Survey of Business Opinion was extraordinarily strong. Along with anticipated lifts in demand indicators, capacity pressures squeezed higher and inflation indicators surged. The labour market is exceptionally tight, showing signs the labour market will return to the frothiness of 2005-2006. Difficulty finding labour is at record highs and we expect that wage inflation will soon lift strongly. It is very clear that record amounts of monetary stimulus are no longer needed to support the economy. With inflation risks getting too high for comfort, we now expect the RBNZ to start lifting the OCR from November this year (previously May 2022)."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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