Central banks’ hike or pause dilemma

“The RBNZ and the RBA continue to choose startlingly different paths in the face of very similar inflation numbers,” said Sharon Zollner, chief economist at ANZ Bank New Zealand. — Bloomberg

SYDNEY: Central banks in New Zealand and Australia showcased starkly different approaches in their battle to quell inflation – illustrating a choice that most of their developed-world peers also confront.

New Zealand policymakers surprised markets with a bigger-than-expected interest-rate increase, sending the kiwi and bond yields racing higher.