RBNZ leaves Official Cash Rate unchanged at 2.25%
The Reserve Bank of New Zealand kept its Official Cash Rate at 2.25%, RNZ reports. The governor had to use a casting vote, and the bank warned the rate will need to rise to counter inflation driven by the Middle East conflict.
The Reserve Bank of New Zealand kept its Official Cash Rate at 2.25%, RNZ reports. With board members split, the governor had to use a casting vote to settle the decision.
The bank warned that the rate will need to rise later on to counter inflation pushed up by the Middle East conflict's impact on energy and prices. Short-term home-loan rates are expected to feel the most immediate effect of the move.
Economists say the central bank is trying to balance support for growth against the need to contain inflation. The path of monetary policy will depend on global energy prices and domestic demand data. This article is not investment advice.
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