The New Zealand Reserve Bank’s interest rate of 2.5 per cent is slated to increase after remaining at a record low for a three-year period, according to a 9 News report
In January, Graeme Wheeler, governor for the Reserve Bank, indicated that the central bank would begin to increase the official cash rate (OCR). Doing so will help New Zealand to become the first developed country to hike this rate since the global financial crisis of 2008.
In a Reuters poll of 17 economists, 15 believed that the rate would increase to 2.75 per cent at today’s rate review.
Wheeler is also expected to discuss the value of the New Zealand dollar, which jumped to a post-float high on the trade-weighted index earlier this week.
The OCR is the rate charged by the Reserve Bank on overnight loans it provides to other banks. It gives the central bank a way of influencing economic activity and inflation.
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