Reserve Bank Boosts Interest Rates as Economy Shows Resilience
New Zealand's economic recovery is expected to continue and broaden, according to the Reserve Bank. Finance Minister Nicola Willis has welcomed this assessment, which was announced alongside a 0.25 basis point lift in the Official Cash Rate to 2.75 per cent.
The Reserve Bank believes that the export sector will remain resilient, household spending will increase, and purchasing power will rise as inflation returns to its target range of around 2 per cent.
Willis says that the economy has proven more resilient than expected in the face of global challenges. She notes that this recovery is different from previous ones, which were driven by rising house prices rather than export growth.
New Zealanders can take heart from this resilience, but Willis cautions that many people are still struggling and there is more work to be done.