Adrian Orr of Reserve Bank of New Zealand discusses its biggest-ever rate hike of 75 basis points.
We are unambiguously contractionary in our monetary position, says RBNZ
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Adrian Orr of Reserve Bank of New Zealand discusses its biggest-ever rate hike of 75 basis points.
The NZ reserve bank needs to understand any change they make TODAY will take 1-3 years to have an actual effect. The NZRB printed far too much money too fast over the last two years dropping rates to near zero, now they have helped to create high inflation they are panicking back the other way. This is high school level economics the RNZB seems to be having issues understanding, and it seems they are about to cause an completely unnecessary recession. The RNZB needs to hold and wait, inflation will take time to drop.