Reserve Bank hikes to 3.5% as economists predict further rises

The Reserve Bank considered a higher increase but decided a 50bps rise was “more appropriate at this meeting”. (Image: NZME)

Rebecca Howard

Wed, 05 Oct 2022

The Reserve Bank of New Zealand (RBNZ) has lifted its official cash rate by 50 basis points to 3.5% and reiterated it will continue “at pace”. “Inflation is currently too high, and employment is beyond its maximum sustainable level,” the monetary policy committee said. The RBNZ is mandated with keeping inflation between 1% and 3%, with a focus on the mid-point and ensuring maximum sustainable employment. Annual inflation is running at 7.3%. “Committee members agreed that monetary conditions need...

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