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VIEW: ASB Now Look For An August Hike

RBNZ

ASB note that "the RBNZ has clearly changed tack to decide that the time for reducing monetary stimulus is very near. Therisk of inflation and employment undershooting its objectives has switched to a risk of overshooting should the current level of stimulus remain in place. Lifting the OCR before too much longer will give the RBNZ a better balance of the various risks. It's a fine line but we now expect the RBNZ will lift the OCR in August – provided key data between now and then are sufficiently strong to support the need for earlier removal of stimulus."

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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