Household demand looks to be cooling in line with RBNZ wishes

(Image: Getty)

Wed, 23 Aug 2023

The Reserve Bank of New Zealand’s monetary policy tightening looks to be cooling household demand.The official cash rate is currently 5.5%, well off the 0.25% it was two years ago.Earlier this month, the Reserve Bank of NZ held rates at 5.5% and said: “The current level of interest rates is constraining spending and hence inflation pressure, as anticipated and required.”Data released Wednesday backed this up. The seasonally adjusted total volume of retail sales fell 1% on the quarter in the June 2023 quarter, according to...

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