Shares & dollar fall as RBNZ pulls the trigger

The Reserve Bank raised the offical cash rate 25-basis points, putting downward pressure on high flying asset prices. (Photo: Dan Brunskill)

Dan Brunskill

Wed, 06 Oct 2021

Equity assets and the kiwi dollar slumped as the Reserve Bank of New Zealand (RBNZ) hiked the official cash rate for the first time in seven years.“No longer is the Bank on emergency settings, it’s now back on the path of traditional central banking,” said BNZ’s head of research Stephen Toplis.NZ’s benchmark equity index lost almost a hundred points in the hours following the 2pm announcement, as investors waved goodbye to the era of ultra-low interest rates.The S&P/NZX 50 Index ultimately closed 0.3% lower, at...

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