In its latest report, New Zealand’s Treasury Department predicted that the economy will narrowly avert a recession next year, in the face of rising rates and slowing demand.
“Treasury projects inflation will slow from 6.9% today to 5.2% by June 2023. It doesn’t see it returning to the RBNZ’s 1-3% target range until early 2025.”
“As usual, the Treasury included an alternative scenario in the budget. “
“The downside slant -- which assumes more persistent inflation and a sharper rise in interest rates -- makes for grim reading, projecting five straight quarters of GDP declines starting in early 2023 as well as a surge in unemployment.”
RBNZ policymakers meet next week, with another half-percentage-point hike in the official cash rate (OCR) on the cards.
Amid recession warnings, NZD/USD is trading 0.16% lower on the day at 0.6367, as of writing. The US dollar has regained its lost ground vs. its major peers.
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.