Opinion

Would it be so bad if the RBNZ paused and took a breath?

Rebecca Howard
Mon, 11 Jul 2022

Would it be so bad if the RBNZ paused and took a breath?
The Reserve Bank is set to raise the cash rate this week (Image: BusinessDesk)
Rebecca Howard
Mon, 11 Jul 2022
Everyone is convinced the Reserve Bank of New Zealand (RBNZ) is going to lift rates by another 50 basis points on Wednesday, but maybe they should hold off.What does the monetary policy committee have to lose if they pause for breath? The official cash rate (OCR) is already at 2%, up from 0.25% only 11 months ago. If it hikes to 2.5% it will have moved 225 basis points in less than a year. They may be “resolute” in their commitment to ensure consumer price inflation returns to within the 1% to 3% band, but NZ rate hikes aren&rs...

Not convinced yet?

Subscribe to our Daily News Update free newsletter.

Markets FREE
A2 shares plunge over FDA formula deferral
Staff reporters | Wed, 10 Aug 2022

A2 shares dropped 11% to $5.01 in early morning trading opened but made up a bit of lost ground by the end of the day.

Tourism
Tourism needs to 'embrace' job-sharing to spur recovery – report
Brent Melville | Wed, 10 Aug 2022

An industry that lost more than a third of its workforce during the pandemic needs to start thinking differently about work sharing.

Primary Sector
A2 Milk gets shot down because of issues in application
Rebecca Howard | Wed, 10 Aug 2022

The FDA continues to work around the clock to address current supply challenges, including reviewing a number of requests from manufacturers for enforcement discretion, as quickly as possible, a spokesperson said. 

Sponsored
A clearer path to the cloud

Step-by-step cloud transition can bring benefits, experts say.

Sponsored
Energy of the future: Why we need innovation

The Tomorrow’s Energy Today conference is looking at ways to develop a clean, affordable and reliable energy future, says Brendan Winitana, chair of the Sustainable Energy Association New Zealand (SEANZ).