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New Zealand Hikes Interest Rate For Second Straight Time
The central bank said inflation remains above target and forecast at least one more 25 basis point increase this year.
- The Reserve Bank's Monetary Policy Committee raised the Official Cash Rate by 25 basis points to 2.75 percent on Tuesday, marking a second consecutive hike to contain inflation pressures.
- Global uncertainty from the Iran War and rising fuel costs drove the decision, as the Reserve Bank seeks to return inflation to its 2 percent target mid-point by end of 2027.
- New Zealand's economic recovery remains uneven, with strong exports offset by weak income growth and job insecurity, though core inflation stayed within the 1 to 3 percent target band in the June quarter.
- Minister Nicola Willis noted the "economic recovery broadening," while ACT leader David Seymour blamed the hike on the "catastrophe" of the Iran War, calling future hikes "spooky."
- Guidance suggests at least one more 25 basis point rise to 3 percent by year end, with the Monetary Policy Committee holding two further meetings in October and December before the election.
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11 Articles
11 Articles
New Zealand Hikes Interest Rate For Second Straight Time
The Reserve Bank of New Zealand delivered back-to-back rate hikes to contain inflation and also signaled further tightening. The Monetary Policy Committee, governed by Anna Breman, decided to raise the Official Cash Rate by 25 basis points to 2.75 percent.
The Reserve Bank of New Zealand has raised its rates for the second time in two months, bringing the OCR to 2.75%. The move fits in a context of inflation to 4.1% and increasing geopolitical tensions, triggering a new sell-off on global bonds that has splashed ten-year yields to the maximum for decades. The... Read more
Coverage Details
Total News Sources11
Leaning Left1Leaning Right0Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
L 20%
C 80%
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