Adrian Orr believes he's struck the right approach with the latest unprecedented hike to interest rates.
The Reserve Bank Governor has lifted the Official Cash Rate by 75 basis points, to a 14 year high of 4.25 percent.
Orr is warning the country could be in recession by the middle of next year, and the OCR may have to peak at 5.5 percent to get inflation under control.
While some have accused him of overcooking things, and others will accuse him of not being aggressive enough, Orr told Mike Hosking the decision has been carefully thought out.
He says the central bank considered a 50, 75 and 100 basis point rise, favouring a higher rise over a lower one.
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.