Forecast: BULLISH

The New Zealand economy performed relatively well in 2017. Inflation is currently at 1.9% which is close to the central bank’s 2% target. The bank’s forward looking indicators suggest the economy will continue to perform well in 2018 and also suggest an interest rate hike in 2019. The Reserve Bank of New Zealand has recently appointed Graeme Wheeler as their new chairman and he has been seen to be hawkish in his policies on monetary policy.

Key data to look out for throughout the year will be inflation, wages, employment, spending GDP Growth and speeches from the central bank on their forecasts for interest rate hikes.

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