RBNZ Governor Wheeler: Rates need to rise 225 bps over next 2.25 years

That’s a lot of hikes.

  • Economy growing faster than potential output
  • Building in ‘significant’ rate adjustment
  • RBNZ serious about containing inflation
  • Says he didn’t consider raising rates today
  • Markets see Fed tapering starting soon
  • Exchange rate is high

The New Zealand dollar will remain volatile but this statement screams ‘long-term buy’.

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