Weak growth won't tether a hawkish RBNZ

NZ's economic contraction won't stop the central bank from hiking. (Image: Unsplash)

Fri, 17 Jun 2022

The economy contracted in the March quarter, but that’s not going to deter a central bank that’s hell-bent on curbing inflation.To be fair, that is its gig. It is mandated with keeping inflation at 1% to 3%, with a focus on the midpoint. Now, setting aside the fact that it failed on the downside for years, annual inflation is now running at 6.9% and it has repeatedly said it will lift the official cash rate (OCR) “at pace” to a level that will “confidently” bring the consumer price index (CPI) to within...

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