Inflation could get shaken about by President-elect Donald Trump’s strict trade promises, Christian Hawkesby tells NBR.
Governor Lowe said repeated hikes to the cash rate target were essential to ensure the current high rate of inflation was temporary.
Primary sector export revenue was up 11% in the year to end of June and is expected to go up another 4% this year.
Public consultation open on potential changes to the remit for the body which sets out the guidelines for maintaining price stability.
OCR expected to peak at 5% as lagged effect of interest rate increases is felt by households as they switch to higher fixed mortgage rates.
Jumbo hike of 75bp will not be the last from RBNZ, with new OCR 5.5% peak expected.
RBNZ continues to tighten at pace and expects a recession later next year.
A whopper 100bp hike was also considered by the monetary policy committee.
Philip Lowe says inflation must be temporary in order to avoid mass economic pain.
Net migration loss of 8400 people in year to September, with concern about the economic impact.