How the New Zealand economy responds to the new rising interest rate environment will dictate the extent of official cash rate rises this year.
The Reserve Bank this morning increased the rate by another 25 basis points, to 3%.
Governor Graeme Wheeler said the rate needed to be at a level where interest rates would not add to demand, fuelling inflation. He reiterated that rates will rise but indicated several factors would determine how quickly that happened.
"The speed and extent to which the OCR will be raised will depend on economic data and our continuing assessment of emerging inflationary pressures, including the extent to which the high exchange rate leads to lower inflationary pressure," he said...MORE»
Thursday, April 24th, 9:00AM
Read what the the Reserve Bank governor, Graeme Wheeler, said about interest rates and the economy.MORE»
Wednesday, April 23rd, 10:53AM 3 comments
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