Reserve Bank expected to hike to 5%, highest in 14 years

(Image: Getty)

Mon, 03 Apr 2023

The Reserve Bank of New Zealand is widely expected to lift the official cash rate by another 25 basis points to 5.00% on Wednesday and signal there’s more to come. The last time rates were at 5.00% was in December 2008. That was 14 years ago. Yes, the economy contracted an unexpected 0.6% in the December quarter, house prices are falling, and there’s been chaos in the global banking system but it all comes down to inflation and inflation expectations.The Reserve Bank of NZ's (RBNZ) chief economist, Paul Conway, was pre...

Unlock all stories free for 10 days

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

We won’t charge for 10 days. You can cancel anytime with two clicks, an email or a phone call. Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].interval) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

You will be charged in 10 days unless you cancel beforehand.
We will remind you three times before charging you.
All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

On the Money

On The Money: 50 Cent Luxon, crime, cones and more...

PM took a police squad to Chemist Warehouse. Next stop: JB Hi-Fi with an army?

Dileepa Fonseka 27 Jul 2024

Fail File

The Fail File: Trish Clark, art expert and gallery owner

'Worrying is pointless and a waste of energy in a crisis'.

Victoria Carter 27 Jul 2024

The Fail File: Trish Clark, art expert and gallery owner

Opinion

Simon Robertson: Nike. Are they doing it?

Business models are incredibly important. Nike’s is flaying.

Simon Robertson 27 Jul 2024

Sponsored

NZ’s “terrible” statistic

Course aims to build employee resilience & business productivity.

Resilient Minds

Sponsored

Digital skills shortage hurting NZ

2degrees study: many companies failing to leverage technology.

2degrees

More Economy

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