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...

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.

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 }}

Markets Market Close

NZME down 2.7% as Trump keeps markets jittery

The S&P/NZX 50 fell 0.79% to 12,011.34 on Tuesday.

Gregor Thompson 5:55pm

The Quiz Free

QuiznessDesk, Tuesday, April 15

Can you beat the Quizmaster?

The Quizmaster 9:15am

Markets

NZME director David Gibson resigns

Gibson's resignation is effective from Tuesday.

Staff reporters 9:00am

Sponsored

Go beyond reporting zero emissions

Clean energy that helps businesses and communities thrive

Meridian Energy

Sponsored

New life in property market

Tax rule changes are bringing back mum-and-dad investors.

Fletcher Living

More Economy

Economy

Property, rentals and hiring attract greatest IRD scrutiny

Blitz has reaped more than $600m in undeclared tax from taxpayers.

Denise McNabb 5:00am

Economy

Retail spending 'much weaker' than expected

Westpac senior economist Satish Ranchhod says retail spending in March was "much weaker than expected".The total value of electronic card spending, including in non-retail services and other non-retail categories, fell a seasonally-adjusted 1.49% to $9.08 billion in March from Fe...

Staff reporters 14 Apr 2025

Economy Opinion

Pattrick Smellie: The unlikely way Trump is helping

The Trump tariff blitz is creating political opportunity in unlikely places.

Pattrick Smellie 14 Apr 2025

Economy

Manufacturing sector keeping head above water

New Zealand’s manufacturing sector remained in expansionary territory for a third consecutive month, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for March was 53.2, down from 54.1 in February. A number above 50 m...

Rebecca Howard 11 Apr 2025

Wholesale interest rates overpriced after Cyclone Gabrielle, Kiwibank says

More Economy

Your company has a subscription

Team