Economic Buzz: RBNZ Delivers Biggest Rate Hike Ever

23 Nov 2022 , 10:27 AM

The Reserve Bank of New Zealand (RBNZ) raised its official cash rate (OCR) by 75bps to 4.25% during the November meeting, the highest level since January 2009. The central bank move was the biggest rate hike in the central banks history, as it continues efforts to curb high inflation ahead of a three-month break. It was also the 9th straight increase, meaning that the OCR has now risen 400bps since October 2021, the most aggressive tightening by the RBNZ since 1999. RBNZ said core consumer price inflation was too high, employment was beyond its sustainable level, and near-term inflation expectations had risen. The committee flagged more rate hikes to come, seeing the OCR would peak at 5.5% in September 2023. Powered by Commodity Insights