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‘Path Of Least Regret’: New Zealand, Canada Send A Message
New Zealand took "the path of least regret" on Wednesday, when RBNZ opted for a 50bps rate hike, the largest increase in more than two decades.
Just five of 20 economists predicted the outsized move, even as markets assigned high odds to a larger increment as the bank seeks to extinguish a raging inflation inferno. Inflation is seen peaking at 7% this quarter, but the chances of entrenched price pressures are rising via the expectations channel.
The rationale, as detailed in the new statement,
