RBNZ sees ‘risk of going too slowly’ with rate rises as ‘biggest source of regret’ English Headline

The Reserve Bank of New Zealand today raised its cash rate by half a per cent to 3.5 per cent.

New Zealand’s ASB Bank Chief Economist Nick Tuffley says the RBNZ follows a “least regrets” framework.

“Which is … if we do something or don’t do something now, how much will we regret that in the future?” he told Sky News Business Editor Ross Greenwood.

“At the moment, what it’s balancing is the risk of going too far versus gong too slowly.

“And at the moment, it sees the risk of going too slowly as its biggest source of regret, in the sense that it just may not do enough and it may have to play catch-up later on.”

English Headline

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