Reply To: Reserve Bank of New Zealand Raise Rates by 75bp to 4.25% to Highest Since January 2009


Reserve Bank of New Zealand Chief economist Conway:

The Bank is hopeful that inflation has peaked
As interest rates have risen, there are early indications that the economy is cooling
The fall in house prices is expected to slow consumption
Era of helpful tradeable inflation may have peaked
The RBNZ underestimated the strength of tradable inflation
China is no longer the deflationary force it once was