New Zeland to Destroy the Middle class Via Raising Rates

New Zealand hikes interest rates for second straight month as inflation risks grow New Zealand’s central bank lifted interest rates for the second time in as many months on Wednesday, driven by rising inflationary pressures and as an easing of…

New Zeland to Destroy the Middle class Via Raising Rates

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New Zealand hikes interest rates for second straight month as inflation risks grow
New Zealand’s central bank lifted interest rates for the second time in as many months on Wednesday, driven by rising inflationary pressures and as an easing of restrictions supported economic activity.
The Reserve Bank of New Zealand (RBNZ) raised the official cash rate (OCR) by 25 basis points to 0.75% in the final policy meeting of the year.
RBNZ said further stimulus easing may be needed and the OCR may go above its neutral rate.

New Zealand’s central bank lifted interest rates for the second time in as many months on Wednesday, driven by rising inflationary pressures and as an easing of coronavirus restrictions supported economic activity.

The Reserve Bank of New Zealand (RBNZ) raised the official cash rate (OCR) by 25 basis points to 0.75% in the final policy meeting of the year, saying it was appropriate to continue reducing monetary stimulus to maintain price stability and support maximum sustainable employment.

All but two of 23 economists in a Reuters poll predicted the RBNZ would raise rates by 25 basis points at the meeting. Markets had fully priced in a 25 basis point rise.

RBNZ said further stimulus easing may be needed and the OCR may go above its neutral rate.

“The Committee expected that the OCR would need to be progressively increased and, conditional on the economy evolving as expected, the OCR would likely need to be raised above its neutral rate,” the bank said in the minutes of the meeting.

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