The Reserve Bank (RBNZ) has raised the Official Cash Rate (OCR) by 75 basis points to 4.25% - and is now forecasting a peak OCR of 5.5% next year. The United States and Europe are, to varying degrees, experiencing the effects of high inflation, tighter financial conditions and associated economic uncertainty. In addition, shorter term inflation expectations have increased as high inflation persists. The Committee agreed that as debt servicing costs rise, spending decisions for many households will be increasingly constrained. On the balance of risks, the Committee agreed that a 75 basis point increase was appropriate at this meeting.

Source: Stuff November 23, 2022 21:46 UTC