The Reserve Bank of New Zealand (RBNZ) today hiked the official cash rate (OCR) another 0.5% – the fifth consecutive double increase. The Committee considered whether to increase the OCR by 50 or 75 basis points at this meeting. On balance, the Committee agreed that a 50 basis point increase was appropriate at this meeting. The RBNZ raised concerns around wage growth and devaluation of the Kiwi dollar, which could lift inflation further:The Committee agreed that the labour market remains very tight. The Committee remains resolute in achieving the Monetary Policy Remit.

Source: New Zealand Herald October 05, 2022 06:56 UTC