Trying conditions: People wading through flood waters in the city of Napier after Cyclone Gabrielle cut a trail of destruction across northern New Zealand. Rate hikes are expected to be placed on pause as the nation deals with the dramatic weather conditions. — AFP
AUCKLAND: There are a number of compelling reasons for traders to keep cutting back bets on future New Zealand interest-rate hikes even as policy makers are set to tighten again this week.
The aftermath of Cyclone Gabrielle that devastated wide swathes of the North Island last week and signs consumer-price pressures are easing around the world may prove enough to offset the central bank’s urge to push up the benchmark rate to a peak as soon as possible.
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