Do we need to bludgeon the economy into submission?

Annual inflation is running at 7.2%. (Image: Getty)

Wed, 19 Oct 2022

Hot annual inflation data sparked a barrage of bank economists demanding steeper rate hikes, but is it the right call? Annual inflation came in at 7.2% in the September quarter, well above the Reserve Bank of New Zealand's forecast of 6.4%.The response was swift, with two-year swap rates jumping 20 basis points and market pricing now tipping the official cash rate to go from its current 3.5% to at least 5.4%. Not everyone agrees massive rate hikes are necessarily the best way forward. The notion “we need to bludgeon th...

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