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New Zealand Treasury say domestic demand is being dampened by high interest rates

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If so that’d be “mission accomplished’ for the Reserve Bank of New Zealand.

Like all other developed market central banks the RBNZ realised there was zero it could do to address supply chain issues that were igniting higher price pressures. The Bank had to instead work to lower domestic demand and attack inflation that way. Which it did. The big difference with the RBNZ was it did so early, way before the likes of the Fed, Reserve Bank of Australia and others.

more to come

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