RBNZ's Silk: Recession forecast shows it'd be shallow and technical
|Reserve Bank of New Zealand (RBNZ) Karen Silk, Assistant Governor, expressed her view on the economic, inflation and monetary policy outlook in her speech on Monday.
Key quotes
A forecast recession would be a shallow and technical one.
Will be closely monitoring higher frequency data such as spending data, and the next CPI report to determine the move in February.
Need to see inflation turn, inflation expectations to come down for a slowdown in tightening.
New Zealand is not being substantially more aggressive than its peers.
Market reaction
Hawkish comments from RBNZ’s Silk fail to impress New Zealand Dollar bulls, as China-driven risk-aversion weighs heavily on higher-yielding Kiwi. The NZD/USD pair is trading at 0.6200, down 0.65% on the day.
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