Cracks starting to show from Reserve Bank hikes – Nikko Asset Management

Nikko's Fergus McDonald said it may be "a job-rich recession". (Image: GoodReturns)

Wed, 29 Mar 2023

A rebound in tourism earnings may rescue the New Zealand economy from an immediate recession but cracks are starting to show from the Reserve Bank of NZ’s rapid succession of rate hikes, said Fergus McDonald, Nikko Asset Management’s head of bonds in the country.“There are cracks starting to show in the NZ economy,” even though the economy may prove to be more resilient than expected.But inflation is proving to be “sticky” and the Reserve Bank of NZ “is going to keep the hammer down” and won&rsquo...

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