An economist says the Reserve Bank could have acted sooner to avoid New Zealand's cost of living crisis
An economist says the Reserve Bank could have acted sooner to avoid New Zealand's cost of living crisis
14 July 2022
The Reserve Bank has raised the Official Cash Rate by 50 basis points, for the third interest rate review in a row.
It brings the OCR to 2.5 percent - in a bid to drive down inflation, which sits at 6.9 percent as of the year to March.
Auckland University Professor Robert MacCulloch says he expected the bank to increase interest rates last year.
He says its failure to do so, has seen the bank go for drastically high increases now - as it seems to be in full panic mode.
© 2024 Newstalk ZB, NZCity