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...

More Economy

ANZ survey: ‘The worst will soon be past’
Economy

ANZ survey: ‘The worst will soon be past’

ANZ-Roy Morgan's survey shows that consumer confidence bounced back from recessionary lows in July.“It’s still very low but has clawed back about half the March-April fall that coincided with ‘recession’ headlines. The lift was driven by improving expectations rather than the...

Staff reporters 26 Jul 2024
The kiwi dollar is falling prey to the bears
Economy

The kiwi dollar is falling prey to the bears

The only worst performer is the Norwegian krone.

Rebecca Howard 26 Jul 2024
Holidays Act: no vacation for taxpayers
Economy In-depth

Holidays Act: no vacation for taxpayers

Let's pay billions of dollars and get nothing new for it.

Nikitin Sallee 25 Jul 2024
Recession worries? Blame China's economic flu
Economy

Recession worries? Blame China's economic flu

Treasury's chief economic adviser says China's economic woes are being felt in NZ.

Dileepa Fonseka 25 Jul 2024