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)

Tue, 08 Nov 2022

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...

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