Bloomberg with comments from HSBC’s head economist for Australia/NZ Paul Bloxham on the outlook for New Zealand:
- Domestic inflation pressures will build in 2015 – sees CPI inflation at 2% by 1Q 2016
- Above-trend economic growth
- Capacity constraints
- Dairy prices will recover in 2015 as China demand improves
- Retains forecast for the RBNZ to resume rate hikes in Q4
- Sees official cash rate hikes to 4.5% by end of 2016
