RBNZ Rate Hike Is Start of a Cycle: Nomura’s Subbaraman

The transcript discusses the hawkish stance of the Reserve Bank of New Zealand (RBNZ) and the start of a rate hiking cycle, with expectations of further hikes due to economic overheating, tight labor markets, and booming housing markets. It highlights the global trend of rate hikes in advanced economies like Norway and Korea. The discussion also covers the impact of COVID-19 on economies, the importance of financial stability, and the role of central banks in addressing inflation and growth. The energy crisis is examined as a factor affecting inflation, with debates on whether inflation is transitory or persistent.

What are the symptoms of an overheating economy mentioned in the text?

What is the significance of the rate hiking cycle mentioned in the text?

How are central banks adapting their policies in response to inflation and growth?

Discuss the impact of the energy crisis on inflation and economic growth.

What factors contribute to the risk of inflation expectations becoming unanchored?