NZD/USD: Higher rates could be a powerful Kiwi ally – ANZ
|Upside USD correction offset post-RBNZ bounce in the NZD/USD pair. Economists at ANZ Bank analyze Kiwi’s outlook.
Will markets buy into the RBNZ’s hawkish tilt?
The big question is: will markets buy into the RBNZ’s hawkish tilt, or land on the side of it being jawboning, but reading the totality of the projections, the RBNZ does seem genuinely concerned that inflation isn’t falling quickly enough and that a housing bounce may give the economy a second wind.
That speaks to interest rates being risk higher and/or holding up for longer, which may be enough to put a floor under the Kiwi.
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