The Reserve Bank of Australia hiked rates by less than most had anticipated this week, but with the economy still running red hot, we doubt that it will take its foot of the brake altogether before early next year. Meanwhile, the hawkish tone of the Reserve Bank of New Zealand is consistent with our view that rates will rise all the way to 4.5% by April. With New Zealand's households having less scope to deal with soaring mortgage payments and the housing market tanking, we're now forecasting a recession in New Zealand next year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services