The RBNZ turns more hawkish, still worried

The hawks are on the rise in the world of monetary policy. (Image: Getty)

Wed, 22 May 2024

The Reserve Bank of New Zealand kept the official cash rate on hold at 5.5% but rejigged its forecasts, taking a more hawkish stance."The committee agreed that monetary policy needs to remain restrictive to ensure inflation returns to target within a reasonable timeframe," it said.Inflation was 4% in the March quarter, still above the 1% to 3% band the central bank targets.HawksThe decision was widely expected but the change in forecasts took the market by surprise. The NZ dollar went from 61.10 US cents to 61.52 US cents shortly afte...

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