New Zealand forecast - "The RBNZ will induce a recession", NZD/USD to 0.55

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New Zealand forecast - "The RBNZ will induce a recession", NZD/USD to 0.55

<p>This update from Kiwibank in New Zealand on their outlook</p><p>The main points:</p><ul><li>The outlook for the Kiwi economy is deteriorating into a recession. Large parts of the global economy will fall into recession, as central banks hike interest rates to squash inflation. The RBNZ is even more extreme.</li><li>The RBNZ are hell-bent on forcing inflation back within its mandated 1-to-3%yoy target band. And fair enough, their credibility as an inflation-fighter is being tested. They expect the OCR to hit 5.5% in order to achieve the required economic slowdown.</li><li>We think a move beyond 5% is a step too far. What the RBNZ will do (hike to 5.5%), is beyond what we think the RBNZ should do. We place a much larger weight on the global slowdown, higher interest rates are effective, and Kiwi are feeling the pinch now.</li></ul><p>Analysts also provide forecasts for the NZD/USD:</p><p>Dec 22: NZD/USD to 0.65</p><p>Jun 23 0.57</p><p>Dec 23 0.55</p><p>Jun 24 0.59</p><p>Dec 24 0.63</p><p>Jun 25  0.67</p><p>Dec 25 0.69</p><p>---</p>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: New Zealand forecast - "The RBNZ will induce a recession", NZD/USD to 0.55

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