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Wednesday, July 14, 2021

New Zealand’s pandemic-free economy ☑️

New Zealand’s pandemic-free economy ☑️

New Zealand’s central bank on announced a halt to its pandemic-induced quantitative easing program, sending the Kiwi dollar soaring as markets bet that a rate hike was now imminent this year.

In other words, they dare to do what everyone else (including the Federal Reserve ) is talking but not daring..

New Zealand’s pandemic-free economy has been growing on the back of a housing boom and strong retail spending, raising concerns that it may get overheated pushing inflation above the bank’s target and squeeze the labour market.

First quarter GDP swept past forecasts, rising 1.6%. A survey last week showed the business outlook was now better than pre-COVID levels, and hiring constraints and inflationary pressures were starting to bite.

Rate hike could be coming as soon as August this year: A rate hike this year would make New Zealand the first developed economy to kick off policy tightening. The Reserve Bank of Australia said earlier this month that it did not expect a rate rise before 2024.

for those who have been paying attention (read this previous idea)

the FXPROFESSOR



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