Wholesale interest rates overpriced after Cyclone Gabrielle, Kiwibank says

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
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...

More Economy

Capital requirements review doesn't mean they are too high
Economy

Capital requirements review doesn't mean they are too high

The Reserve Bank of NZ is not committed to any one particular outcome. 

Rebecca Howard 07 May 2025
Jobs figures firm up expectations for further RBNZ rate cuts
Economy

Jobs figures firm up expectations for further RBNZ rate cuts

Unemployment remained unchanged at 5.1% in the March quarter.

Rebecca Howard 07 May 2025
Unemployment remains unchanged at 5.1%
Economy

Unemployment remains unchanged at 5.1%

Unemployment remained unchanged at 5.1% in the March quarter, Stats New Zealand said on Wednesday.The seasonally adjusted number of unemployed people was 156,000, the same as the December 2024 quarter.Meanwhile, the seasonally adjusted underutilisation rate – a measure of spare c...

Staff reporters 07 May 2025
Tariffs pose significant risks to financial stability: RBNZ
Economy

Tariffs pose significant risks to financial stability: RBNZ

NZ financial institutions are in a strong position to support the economy.

Rebecca Howard 07 May 2025