The Reserve Bank of New Zealand is ahead of most other central banks in lifting borrowing costs to tame inflation, today taking its benchmark rate above neutral, which it deems to be 2 per cent.
| New Zealand’s central bank raised interest rates by half a percentage point on Wednesday for a third straight meeting and said it would continue to tighten policy “at pace” until it was certainThe Reserve Bank’s Monetary Policy Committee increased the official cash rate to 2.5 per cent from 2 per cent in Wellington, as expected by all 20 economists in a Bloomberg survey.
Wednesday’s decision was an interim review rather than a quarterly monetary policy statement, so the bank did not issue new forecasts and there was no press conference with governor Adrian Orr.The RBNZ said it remained “comfortable” with the projected path of the official cash rate outlined in its most recent forecasts in May. Those projections show the benchmark rate rising to about 4 per cent next year.
When it unexpectedly raised by 50 basis points in April, it presaged a shift to more aggressive tightening by other central banks.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fall in New Zealand house prices offers insight into what might happen in AustraliaAustralian house prices are not expected to plummet below pre-COVID levels with experts saying the local property market can look to the “soft landing” being experienced in New Zealand as a guide
Read more »
Fall in New Zealand house prices offers insight into what might happen in AustraliaNew Zealand is about six months into their housing downturn, offering some clues about what’s to come next for Australian property. housing property
Read more »
New Zealand reports second monkeypox case, unrelated to firstAuthorities say the case is in a returned traveller who is now isolating, and is not linked to the first
Read more »
Fall in New Zealand house prices offers insight into what might happen in AustraliaNew Zealand is about six months into its housing downturn, offering some clues about what’s to come next for Australian property.
Read more »
Is New Zealand Australia's economic canary in the coal mine?New Zealand is about six months ahead of Australia in its moves to bring down inflation, so is looking across the ditch a glance into our future?
Read more »
No fear: the New Zealand virtual reality app helping conquer phobiasResearchers found the app, which gradually exposes people to their worst fears, can greatly reduce phobia symptoms
Read more »