The Collaborative Market Data Network -
serving the Public interest of Transparency in Debt Capital Markets
The Collaborative Market Data Network
Serving Transparency in Capital Markets
The Collaborative
Market Data Network

NEW ZEALAND: MIGRATION POSES RISK TO DISINFLATION AND RATE CUT PROSPECTS

Post Date: 23 February 2024

The spike in net immigration in NZ does not have obvious implications for prices but recent data suggests the inflationary effect via the housing channel is outweighing the disinflationary relief to labour supply. This means, in our view, that the RBNZ will not deliver a clear dovish pivot in February, which is likely to benefit NZD beyond the near term


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