New Zealand Treasury sees RBNZ raising rates from mid-2018
|New Zealand pre-electon Economic cand Fiscal update [PREFU] released today shows the Treasury expects the Reserve Bank of New Zealand [RBNZ] to kick-off the tightening cycle in mid-2018.
Key points
Raises 2016-17 budget surplus estimate to NZD 3.71 billion
Leaves 2017-18 surplus forecast little changed and sees a smaller surplus in 2019-21 on lower growth
Will not consider tax cuts until 2020 unless economic conditions are better than anticipated
Sees 2017/18 year GDP growth at 3.5 pct (budget forecast 3.7 pct)
Sees 2016/17 net debt 22.5 pct of GDP (budget forecast 23.2 pct)
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