RBNZ is 'Absolutely' Prepared to Increase Interest Rates If Needed, Silk Says

Reported 6 months ago

The article discusses how the Reserve Bank of New Zealand (RBNZ) is prepared to raise interest rates if necessary to bring inflation back to target, according to Assistant Governor Karen Silk. The RBNZ left the Official Cash Rate at 5.5% but indicated a potential hike and the need for restrictive policy due to domestic inflation pressures. Silk mentioned risks to both the upside and downside, with the bank forecasting a potential rate increase this year and no easing until 2025. The RBNZ has adjusted its modeling to account for more capacity pressures in the economy and is closely monitoring non-tradables inflation and labor market data.

Source: YAHOO

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