RBA’s tightening cycle is likely at an end

The RBA left the door open to further tightening when it hiked rates by 25bp this week. However, policy is already well into restrictive territory and much of this year’s tightening has yet to work its way through the economy. Accordingly, we still think the Bank won’t raise rates any further. Elsewhere, the New Zealand government is making welcome progress on fiscal consolidation, which should make the RBNZ’s job a little easier.