The Reserve Bank of New Zealand (RBNZ) is projecting 3-3.5% growth in coming years, partly driven by fiscal stimulus in the pipeline, and whether National or Labour form a government in September.  A key implication of the recent Monetary Policy Statement is that, if the economy struggles to reach this growth rate, the Official Cash Rate (OCR) may have to be cut further to deliver the demand pressures required to hit the RBNZ’s inflation target.     read more.....

Publication by Harbour Asset Management