Another New Zealand Interest Rate Hike Carries Surprise
April 5, 2023
Officials at the Reserve Bank of New Zealand had been expected to leave policy steady but instead raised the Official Cash Rate by another 50 basis points to a 171-month high of 5.25%. This was the second half percentage point tightening of 2023 and follows 350 basis points of increase during 2022 and 50-bp hike in October 2021. From March 202o until then the OCR had been only 0.25%. A released statement justifying today’s additional tightening calls inflation persistent and excessive and recent employment unsustainable. Officials also state that New Zealand’s financial system is well-positioned to handle an appropriately restrictive monetary policy stance.
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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