ANZ sees chance OCR may go up in August, but Jarden says cool it stuff.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from stuff.co.nz Daily Mail and Mail on Sunday newspapers.
“Households spent more on accommodation, eating out, and purchasing big ticket items such as furniture, audio visual equipment and motor vehicles,” Stats NZ accounts manager Paul Pascoe said. The growth followed a disappointing 1 per cent drop in GDP in the December quarter and immediately fuelled speculation that the Reserve Bank will need to consider raising the Official Cash Rate from 0.25 per cent earlier than expected.
STUFF
The Monitor looks at how individual parts of New Zealand s economy have rebounded since the Covid-19 pandemic hit. Video first published in April 2021. Most economists have been expecting the central bank to start tightening rates around the middle of next year.
Analysis - The central bank will likely hold its official cash rate steady, and leave other key policies unchanged, Business Editor Gyles Beckford writes.
Tom Pullar-Strecker05:00, May 25 2021
Reserve Bank former chief economist, John McDermott, explains how inflation is measured and how it manifests itself.
Markets will be watching the Reserve Bank’s monetary policy statement on Wednesday for signs it now expects higher growth and inflation and might ‘tighten’ earlier than expected, economists say. BNZ research head Stephen Toplis said the central bank was in a very difficult position as the market was now at a turning point and the bank would not want to trigger an overreaction. “Nobody would really argue there was as much chance of them easing further as there is of them tightening.”