May 25, 2021 • 5 mins
The Reserve Bank tomorrow will unveil it's second full Monetary Policy Statement of the year.
While the focus is usually on the Official Cash Rate, many are wondering what the Bank will signal around inflation and interest rates.
Writing in the New Zealand Herald, business editor-at-large Liam Dann said that "the biggest bet in global economics right now is on whether post-Covid inflation will prove to be a short-term blip or a more persistent structural problem".
"Financial markets are already on edge and the debate is shaping up as one of the most divisive in a generation."
Independent economist Tony Alexander told Simon Barnett and Phil Gifford that they won't increase tomorrow, and it likely won't happen until the middle or end of 2022.
"Initially, I think they will go relatively slowly as we haven't had a period of sustained interest rate increases in New Zealand since 2004 to 2008, so it's going to be quite experimental it starts getting going."
LISTEN ABOVE
While the focus is usually on the Official Cash Rate, many are wondering what the Bank will signal around inflation and interest rates.
Writing in the New Zealand Herald, business editor-at-large Liam Dann said that "the biggest bet in global economics right now is on whether post-Covid inflation will prove to be a short-term blip or a more persistent structural problem".
"Financial markets are already on edge and the debate is shaping up as one of the most divisive in a generation."
Independent economist Tony Alexander told Simon Barnett and Phil Gifford that they won't increase tomorrow, and it likely won't happen until the middle or end of 2022.
"Initially, I think they will go relatively slowly as we haven't had a period of sustained interest rate increases in New Zealand since 2004 to 2008, so it's going to be quite experimental it starts getting going."
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Mark as Played
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations.
The Nikki Glaser Podcast
Every week comedian and infamous roaster Nikki Glaser provides a fun, fast-paced, and brutally honest look into current pop-culture and her own personal life.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.