The Reserve Bank today hiked the OCR up further, citing high inflation for the move.
The cash rate has been lifted 0.25 basis points to 5.5 percent, and Governor Adrian Orr says rates will need to stay elevated to ensure inflation gets back below 3 percent.
Milford Asset Management analyst Katlyn Parker says holding rates to this level while forecasting negative growth and rising unemployment is an 'interesting scenario'.
"The RBNZ can claim the impact of fiscal spending post- Budget and also the record levels of migration that we are receiving at the moment, that was definitely a surprise. Both are real risks for inflation."
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Popular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.