Reserve Bank of New Zealand Raises Rate Despite Recession Risk
recession The Reserve Bank of New Zealand has announced a further sharp rise in interest rates, despite recent indications that activity in the economy is slowing and could be on the cusp of a recession.
SYDNEY - The Reserve Bank of New Zealand announced Wednesday a sharp increase in interest rates despite recent signs that the economy, which is rich in agriculture, is slowing down and may be in danger of falling into recession.
After its policy meeting, the RBNZ announced that the official cash rate had been increased from 4.75% a 5.25%. Economists expected a smaller increase to 5.0%.