NZ rates have been sitting north of 7% for over a year. Wed or Thur a minister or banker said NZ rates may need to be hiked again. The comment was quite a surprise since the central bank has been inactive for well over a year. If recollection serves ...
Exactly correct, BH. Sentiment is - rather stupidly - believing that the CB will continue to hike. This is of course ridiculous, since the main reason quoted for inflationary costs was the rise in petrol. Petrol is beginning to cool off, and the kiwi - low as it was before - is now back up in the low to mid 66s. This will give the CB the chance to cut rates in 07, not hike them. But let the market players do as they will!