Don't expect rate cuts any time soon

The Reserve Bank is widely expected to lift the official cash rate to a peak of 5.5% this month. (Image: NZME)

Thu, 04 May 2023

New Zealand’s tight labour market will not only keep the Reserve Bank of NZ on track to hike rates again this month but will stave off any easing for a considerable period. After Statistics NZ published jobs data for the March quarter, BNZ head of research Stephen Toplis said: “The Reserve Bank will not be easing any time soon. If we are right about the evolution of the economy, it will be well into next year before this will happen.”ASB senior economist Mark Smith said both the weaker demand and stronger supply should se...

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