this post was submitted on 12 Jul 2023
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Reserve Bank leaves official cash rate at 5.5% (www.rnz.co.nz)
submitted 1 year ago by NoRamyunForYou to c/newzealand
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"The Reserve Bank stuck to the script and left the official cash rate unchanged at 5.5 percent, confirming an end to its 21-month tightening campaign"...

"It said inflation, currently at an annual rate of 6.7 percent, was expected to keep falling as would inflation expectations, with a slowing global economy, an easing in supply chain disruptions, cooler labour and housing markets"...

"It estimated that inflation would be back in the target band in the second half of 2024"...

"We don't expect OCR cuts until May next year, give or take"

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[–] absGeekNZ 5 points 1 year ago* (last edited 1 year ago)

This was the expected outcome, last time to said they had "done enough" WRT rate rises.

5.5% for a year will hurt just a little, but that should be eased a little by inflation pulling back. And way less than inflation continuing to escalate without income raised to keep up.

Edit: got to check the autocorrect more closely when posting from my phone.