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VIEW: BNZ: Hike Now A Coin Toss

RBNZ

BNZ write that "the restrictive lockdown and unknown spread of the virus has turned an RBNZ rate hike today from a sure thing into a coin toss. Supporting the RBNZ going ahead with a rate increase, the current strong inflationary pressures haven't magically disappeared and a relatively short lockdown would see a sharp bounce-back in activity, with not much overall economic loss. But even inflation hawks would understand if the RBNZ chose to delay the inevitable tightening, as long as the Bank indicated some intent to get moving once the dust has cleared."

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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