Articles tagged Reserve Bank

Annual inflation stood at just 1.1 percent according to data released by Stats NZ on Wednesday, but economists predict that number will rise as tightness in the Labour market fuels wage increases. Thomas Coughlan reports.

Updated

The IMF suggests the Reserve Bank adopt a debt-to-income limit to reduce the risks from a still-heavily indebted household sector. Thomas Coughlan reports.

After almost 30 years the Reserve Bank of New Zealand has abandoned its pioneering approach of focusing solely on inflation. It will now aim to both keep inflation low and maximise employment, although it's not clear yet whether it's more than just window-dressing. Thomas Coughlan reports.

Updated

Reserve Bank Governor-designate Adrian Orr and Finance Minister Grant Robertson said there would be no change to the Bank’s two percent mid-point target for inflation when they signed the Reserve Bank’s new Policy Targets Agreement at the Beehive on Monday, but they did include a new aim of supporting maximum levels of sustainable employment.

Employers used immigration of cheap workers to keep growing at the end of 2017, putting off the tough decisions and investment needed to boost productivity and real wages. Thomas Coughlan reports. 

Updated

The Reserve Bank faced questions from a Government MP today about why it couldn't cut interest rates to drive unemployment even lower. It argued in response further rate cuts could inflate the housing market again and it preferred interest rate stability to taking a risk that inflation could reappear.