High inflation to persist for two years, says Reserve Bank

High inflation to persist for two years, says Reserve Bank
Expect at least two more years of high interest rates, based on today's survey results. (Image: Getty)
Pattrick Smellie
The annual rate of inflation is expected still to be above 5% by September next year, increasing the potential for the Reserve Bank of New Zealand to unleash a savage 75-basis-point increase in the official cash rate at its next monetary policy update.On Nov 23, it will announce the official cash rate (OCR) and its monetary policy statement.The central bank’s latest survey of expectations shows businesses expect inflation to be stronger than they were expecting three months ago, increasing to 5.08% for the year to September 2023, up from...

More Finance

PGG Wrightson CEO: OCR hike would hurt rural sector confidence
Finance

PGG Wrightson CEO: OCR hike would hurt rural sector confidence

The company suspended its interim dividend, worrying about adding debt if rates go up.

Riley Kennedy 28 Feb 2024
ASB's Shortt: Move beyond 'investing to survive'
Finance

ASB's Shortt: Move beyond 'investing to survive'

The ASB CEO says businesses have been in 'investing to survive' mode.

Dileepa Fonseka 28 Feb 2024
John Key steps down as ANZ Bank NZ chair
Finance

John Key steps down as ANZ Bank NZ chair

John Key will retire from all ANZ boards on March 14. Key joined the ANZ NZ board in 2017 after stepping down as New Zealand’s prime minister. He became chair of the board in 2018 and then joined the ANZ Group board as a director.The board of ANZ Bank New Zealand has appointed Sc...

Staff reporters 27 Feb 2024
Why Fonterra Oceania makes sense
Finance

Why Fonterra Oceania makes sense

It’ll be made out of Fonterra Australia and Fonterra Brands NZ.

Riley Kennedy 23 Feb 2024