Is a 75-basis-point rate hike necessary?

Is a 75-basis-point rate hike necessary?
Will a record-high rate hike dampen inflation? (Image: Getty)
Rebecca Howard
New Zealand bank economists say the central bank is about to make history with an unprecedented 75 basis point rate hike, but is it necessary? “Absolutely not,” said Sense Partners economist Shamubeel Eaqub. Market pricing, meanwhile, is on the fence, with 63 bps priced in, which is halfway between 50 and 75. The Reserve Bank has already hiked the official cash rate 325 bps to 3.50% since October 2021. A 75 bps increase on Wednesday at 2pm would take it to 4.25%, well above Australia's 2.85%. It would also be the...

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