Economy

Reserve Bank will hike but not as much as it says

Rebecca Howard
Wed, 25 May 2022

Reserve Bank will hike but not as much as it says
Economists say a slowdown will slow down the bank. RBNZ governor, Adrian Orr (pictured). (Image: Getty)
Rebecca Howard
Wed, 25 May 2022
The Reserve Bank of New Zealand has signalled the official cash rate will be another 200 basis points higher in a year, but economists don’t think it will have to go that far.The Reserve Bank of NZ (RBNZ) lifted the official cash rate (OCR) by 50 basis points to 2.0% and now expects it to peak at 3.9% in June 2023, up from its February view that it would peak at 3.4% in Sept 2024.The OCR is now the highest it has been since September 2016. “A larger and earlier increase in the OCR reduces the risk of inflation becoming persiste...

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