June 25, 2022

News Collective

Complete New Zealand News World

New Zealand has the biggest tariff hike in 22 years Markets

The Reserve Bank of New Zealand raised interest rates on Wednesday, as decided at the previous three meetings, amid fears of inflationary pressures and an uncertain global economic environment.

The agency raised rates this time by 0.5 percentage points, the largest increase since May 2000, leaving it at 1.5%, the official report said. The regulator believes the increase is appropriate to maintain price stability and support maximum job stability, emphasizing that current inflation is “above the target range of 1 to 3%”.

“This general inflationary pressure is compounded by severe supply shortages and trade disruptions due to the recent recovery in global demand. The economic downturn caused by Govt-19 has led to higher energy and food prices as a result of the Russian invasion of Ukraine,” they said.

Last October, the Reserve Bank of India, which had kept interest rates at an all-time low of 0.25% since March 2020, announced an increase of 0.25% for the first time since the outbreak, and raised it again on both occasions in November and February. 0.25%

The maritime nation fears inflation will reach 7% next week, amid concerns linked to unemployment (currently 3.2%) and a slump in the housing market, according to radio outlet Radio New Zealand. The inflation rate recorded in 2021 was 5.9%, up from 7.6% after June 1990, according to data from the New Zealand Bureau of Statistics NZ.

See also  More than thirty pilot whales are largely stranded in New Zealand