Reserve Bank may follow the US Fed and slow the pace

Rising interest rates are straining household budgets. (Image: Getty)

Thu, 02 Feb 2023

This week’s jobs data cemented the view the central bank will hike by “just” 50 basis points this month, to 4.75%, in particular after the US Federal Reserve (the Fed) opted to lift the benchmark rate by 25 basis points.Its target range is now 4.5% to 4.75%. The Federal Open Market Committee's statement did have a promise for "ongoing increases" in rates and chair Jerome Powell told media it would take a "couple more" hikes to get things fully under control, Bloomberg reported.However, he also sai...

Subscribe to BusinessDesk

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

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

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].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

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 }}

Finance

Sharesies’ app affected by more than hour-long outage

Sharesies portfolio app was down for more than an hour, frustrating US-focused investors.

Andy Macdonald 12:54pm

Policy

Nash cuts ties with migrant investor pitch

‘I have dissociated myself from this completely.’

Pattrick Smellie 12:30pm

Nash cuts ties with migrant investor pitch

Infrastructure

Wellington expressways save $173m a year, report finds

Transmission Gully saves up to 31 minutes in peak times some days, report says.

John Anthony 10:00am

Wellington expressways save $173m a year, report finds

Sponsored

Future leaders start by Dreaming Big

How OnBeingBold empowers Year 13 girls at free leadership events.

OnBeingBold

Sponsored

Free AI training blitz targets 10,000 Kiwis

Workshops aim to close NZ’s AI skills gap and boost productivity – no tech skills required.

Sponsored by Lumify

More Economy

Economy

Willis teases new RBNZ governor after GDP drop

Finance Minister Nicola Willis says a new Reserve Bank of New Zealand governor will be announced “very shortly” as she comes under growing pressure to tackle NZ’s economic woes.Economists are calling on the RBNZ to cut the official cash rate (OCR) more aggressively after yesterda...

Staff reporters 9:00am