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VIEW: TD Securities Front-Load RBNZ Tightening Call

RBNZ

TD Securities note "another stellar NZ employment report, blitzing the RBNZ's forecasts. The beat is too hard to ignore and forces a change of call on the RBNZ. Least regrets warrants the RBNZ acting. Inflation and Employment are likely to exceed the Bank's objectives if it doesn't tighten.

  • "We now expect the RBNZ to hike in Aug, Oct, Nov 2021 (prior Aug, Nov). For 2022 we retain the Feb hike, bring forward the Aug hike to May but remove the Nov'22 hike. End result, our 1.5% OCR forecast is achieved mid-2022, not at year end. RBNZ macro prudential tightening removes the need for rate hikes later in the year."
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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