Reserve Bank expected to hike to 5%, highest in 14 years

Reserve Bank expected to hike to 5%, highest in 14 years
(Image: Getty)
Rebecca Howard
The Reserve Bank of New Zealand is widely expected to lift the official cash rate by another 25 basis points to 5.00% on Wednesday and signal there’s more to come. The last time rates were at 5.00% was in December 2008. That was 14 years ago. Yes, the economy contracted an unexpected 0.6% in the December quarter, house prices are falling, and there’s been chaos in the global banking system but it all comes down to inflation and inflation expectations.The Reserve Bank of NZ's (RBNZ) chief economist, Paul Conway, was pre...

More Economy

Consumer confidence back on the up – ANZ survey
Economy Free

Consumer confidence back on the up – ANZ survey

Consumer confidence rose five points to 98.3 in April, according to the latest ANZ-Roy Morgan survey, shoring up the upward trend that was starting to look wobbly.But inflation expectations also rose sharply – up 0.5 points to 4.7%, the highest reading since July 2023.“Household...

Staff reporters 24 Apr 2025
‘Uncertainty abounds’: Willis on trade war challenges
Economy

‘Uncertainty abounds’: Willis on trade war challenges

The impacts for NZ are twofold and will make its economic recovery harder, Willis says.

Rebecca Howard 23 Apr 2025
Rise in liquidations compounded by IRD crackdown
Economy

Rise in liquidations compounded by IRD crackdown

The IRD filed two-thirds of creditor applications in the March quarter.

Gregor Thompson 22 Apr 2025