Stagflation fear sends NZ shares sliding

The RBNZ may double the official cash rate in the coming months. (Photo: Dan Brunskill)

Tue, 08 Mar 2022

New Zealand shares tumbled on Tuesday as short-dated government bond yields hit new highs after ANZ Bank predicted the official cash rate could be doubled by May.The S&P/NZX 50 Index fell 168 points, or 1.4%, to 11,744.95. Turnover was $173 million.Sky-rocketing oil prices have prompted ANZ’s chief economist, Sharon Zollner, to forecast a 50-basis point interest rate increase in both April and May this year.This would mean the Reserve Bank of NZ would double the official cash rate in just two months, something Zollner said was a &ldqu...

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