Wholesale interest rates overpriced after Cyclone Gabrielle, Kiwibank says

Kiwibank chief economist Jarrod Kerr believes the central bank should not raise rates while cyclone damage is still being assessed. (Image: Kiwibank)

Dan Brunskill

Fri, 17 Feb 2023

Kiwibank economists say wholesale interest rates are overpriced as the Reserve Bank of New Zealand (RBNZ) may rein in next week's rate hikes due to cyclone damage.The Reserve Bank monetary policy committee has been meeting since Monday as it thrashes out how to set the official cash rate (OCR) next Wednesday.Since the committee first began deliberations, Cyclone Gabrielle has caused serious damage to parts of the North Island, prompting Kiwibank economists to call for a pause to rate hikes.In a note released on Thursday afternoon, the econo...

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