The New Zealand Federal Reserve May Raise Interest Rates And Raise Interest Rates.

In view of the fact that inflation in New Zealand is higher than the target and the economy is growing at a rate of 3% per year and the housing market is overheated, the New Zealand Federal Reserve will probably raise interest rates on the face of it, rather than maintain it at a record low.

However, all 16 economists surveyed by foreign media expect that the New Zealand Federal Reserve will maintain its official cash rate unchanged at 1.75% on Thursday.

Stephen Toplis, head of New Zealand Bank Research in Wellington, said: "New Zealand's cash rate should not be 1.75%, but there is no doubt that the New Zealand Federal Reserve will find one.

Of course, at least the Fed will be forced to admit that there is a tendency to tighten now. "

Data showed that the inflation rate of New Zealand accelerated to 2.2% in the first quarter of this year, much higher than that of the 1.5% of the New Zealand Federal Reserve, which is the middle point of the 1-3% target range for the first time since 2011.

At the same time, it also indicates that the New Zealand Federal Reserve Chairman Wheeler (Graeme Wheeler) may face pressure to abandon neutral monetary policy stance.

Although the Fed said in February that the next interest rate adjustment might be up or down, it did not expect to raise borrowing costs by the end of 2019.

But most investors now predict that the New Zealand Federal Reserve will start raising interest rates in early 2018.

Economists say that in this week's new forecast,

We will have to admit rising inflation pressure and advance its policy tightening expectations.

However, Wheeler has every reason to be cautious, especially the international environmental turmoil, and there are signs that economic growth will not be as strong as he expected.

In addition, Wheeler raised interest rates in 2014.

Pressure is down, and forced to cut interest rates.

New Zealand's assistant Federal Reserve Chairman, John McDermott, said in February that before raising interest rates, the central bank needed to be confident that inflation would remain at 2%.

"We have been in this position before, but broader inflation has not been achieved," said Hui Cameron Bagrie, chief economist of ANZ in Wellington.

However, growth momentum, inflation and inflation expectations are rising, labor market tightening and the decline in the NZD exchange rate make it difficult for clear neutral positions to find enough justification. "

The Fed has reached nearly 2% of its inflation target and has achieved its target of employment. It is likely that further interest rates will be needed.

On the scale, she also thinks the Fed needs to solve the balance sheet problem.

It is roughly balanced against the risks faced by inflation, so the balance sheet is allowed to narrow naturally.

Meanwhile, Saint Louis Fed chairman Brad said the US economy seemed to be in a low growth state, reiterated that the Fed did not need to raise interest rates.

He believes that the Fed's current interest rate policy is appropriate.

Federal Reserve George said in a day that GDP weakness in the first quarter is not the reason for the Federal Reserve to stop raising interest rates gradually. The overshooting of unemployment will bring risks to economic expansion.

She expects the risk of delay in raising interest rates will bring risks, thereby supporting a gradual increase in interest rates.

She also reiterated that the Fed should start shrinking this year.

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