New Zealand's Reserve Bank governor expects rates to rise to 'neutral'
The Reserve Bank of New Zealand held the official cash rate at 2.25%, a decision reached only after the governor used her casting vote to break a deadlock. The governor said she expects the rate to rise over time toward a 'neutral level'.
The Reserve Bank of New Zealand held the official cash rate (OCR) at 2.25%, RNZ reported, with the decision reached after a tied board vote was broken by the governor's casting vote.
The governor said the current level is temporary and that she expects the rate to rise over time toward a 'neutral' setting — one that neither stimulates nor restrains the economy. The split decision points to differing views among board members.
Shortly after the announcement, Kiwibank became the first lender to adjust its rates. Inflation and growth data in the period ahead will shape the rate path. This article is not investment advice.
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