VOT Research Desk
Karen Silk, Assistant Governor of the Reserve Bank of New Zealand (RBNZ), gave a speech on Monday in which she discussed the forecast for the economy, inflation, and monetary policy.
The predicted recession would be brief and technical. The change in February will be decided by carefully observing higher frequency data, such as spending data and the upcoming CPI report.
For the tightening process to slow down, inflation must turn and inflation expectations must decline. Not significantly more aggressive than its competitors are New Zealand.
Bulls of the New Zealand Dollar are unimpressed by RBNZ’s Silk’s hawkish remarks because China’s risk aversion has a significant negative impact on the higher-yielding Kiwi. The NZD/USD pair is now down 0.65% on the day, trading at 0.6200.
