Official Cash Rate to remain restrictive at 5.50 percent

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The current account balance : an analysis of the issues

Sean Collins, Francisco Nadal De Simone, David Hargreaves

This article takes a detailed look at the factors influencing New Zealand’s current account deficit, and its potential economic ramifications. We conclude that although New Zealand’s current account deficit is sizeable and cannot be expected to remain at current levels indefinitely, adjustment when it occurs – and recent depreciation of the exchange rate suggests that that adjustment has already begun – is unlikely to be disruptive to the economy.