Stephen Koukoulas Rates Quotations

Some of the highest interest rates in the world keep demand for the currency strong.

We forecast the Reserve Bank will raise rates by the middle of the year as it works to damp inflation pressures that are still pronounced.

The credit data, together with the TD-MI monthly inflation gauge for October suggest the Reserve Bank will leave interest rates unchanged,

The case for a rate hike is clearly much stronger. The rest of the world is raising interest rates and global inflation rates are edging higher. Fuel-price increases will flow through to inflation.

For the New Zealand dollar it looks like one-way traffic. The scenario for cutting rates is now realistic, if not urgent.