Budget 2023 will push the RBNZ to hike harder

Budget creates upward pressure on interest rates. (Image: BusinessDesk)

Fri, 19 May 2023

Budget 2023 may mean higher interest rates, economists say.The budget adds inflation pressures in the short-term and supports the view the Reserve Bank of New Zealand (RBNZ) might need to lift the official cash rate higher than 5.5%, said Westpac Bank senior economist Nathan Penny. Earlier this week, Westpac Bank forecast the official cash rate will have to go to 6.0%. The central bank will make its next monetary policy statement on Wednesday and is widely expected to lift rates by 25 basis points to 5.5%. Most economists had ex...

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