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      "data": "<header class=\"header-container header-chrome\"><form class=\"minerva-header\" action=\"https://en.m.wikinews.org/w/index.php\" method=\"get\"><nav class=\"navigation-drawer toggle-list view-border-box\"><input id=\"main-menu-input\" class=\"toggle-list__checkbox\" role=\"button\" type=\"checkbox\" aria-labelledby=\"mw-mf-main-menu-button\"><label id=\"mw-mf-main-menu-button\" class=\" mw-ui-button mw-ui-quiet mw-ui-icon mw-ui-icon-element mw-ui-icon-wikimedia-menu-base20 mw-ui-icon-flush-left toggle-list__toggle\" title=\"Open main menu\" for=\"main-menu-input\" data-event-name=\"ui.mainmenu\">Open main menujjj</label><div id=\"mw-mf-page-left\" class=\"menu toggle-list__list view-border-box\"><ul id=\"p-navigation\"><li class=\"\"><br></li><li class=\"\"><br></li></ul><ul id=\"p-personal\"><li class=\"\"><br></li></ul><ul id=\"pt-preferences\"><li class=\"jsonly\"><br></li></ul><ul id=\"p-donation\"><li class=\"\"><br></li></ul><ul class=\"hlist\"><li class=\"\"><br></li><li class=\"\"><br></li></ul></div><label class=\"main-menu-mask\" for=\"main-menu-input\"></label></nav><div class=\"branding-box\"><a href=\"https://en.m.wikinews.org/wiki/Main_Page\" data-mce-href=\"https://en.m.wikinews.org/wiki/Main_Page\">Wikinews</a></div><nav class=\"minerva-user-navigation\" aria-label=\"User navigation\"><div><button id=\"searchIcon\" class=\"mw-ui-icon mw-ui-icon-element mw-ui-icon-wikimedia-search-base20 skin-minerva-search-trigger mw-ui-button mw-ui-quiet\">Search</button></div></nav></form></header><main id=\"content\" class=\"mw-body\"><div class=\"banner-container\"><div id=\"siteNotice\"><div id=\"centralNotice\"></div></div></div><div class=\"pre-content heading-holder\"><div class=\"page-heading\"><h1 id=\"section_0\">New Zealand raises interest rates in second straight month to 0.75%</h1><div class=\"tagline\"><br></div></div><nav class=\"page-actions-menu\"><ul id=\"page-actions\" class=\"page-actions-menu__list\"><li id=\"language-selector\" class=\"page-actions-menu__list-item\"><a id=\"\" class=\"mw-ui-icon mw-ui-icon-element mw-ui-icon-wikimedia-language-base20 mw-ui-button mw-ui-quiet mw-ui-icon-with-label-desktop mw-ui-button mw-ui-quiet  language-selector disabled\" title=\"Language\" role=\"button\" href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\" data-mw=\"interface\" data-event-name=\"menu.languages\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\">Language</a></li><li id=\"minerva-download\" class=\"mw-list-item mw-list-item-js page-actions-menu__list-item\" data-minerva-portlet=\"true\"><a accesskey=\"p\" title=\"Download PDF [alt-p]\" href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#\" 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id=\"mw-content-text\" class=\"mw-body-content mw-content-ltr\" dir=\"ltr\" lang=\"en\"><div class=\"mw-parser-output\"><section id=\"mf-section-0\" class=\"mf-section-0\"><p><strong class=\"published\"><span id=\"publishDate\" class=\"value-title\" title=\"2021-11-25\"></span>Thursday, November 25, 2021 gg&nbsp; &nbsp;</strong></p><div class=\"infobox noprint desktop-only\"><div><strong><a class=\"mw-redirect\" title=\"Economy and business\" href=\"https://en.m.wikinews.org/wiki/Economy_and_business\" data-mce-href=\"https://en.m.wikinews.org/wiki/Economy_and_business\">Economy and business</a></strong></div><div><div class=\"center\"><div class=\"floatnone\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/6/65/Euro_coins_and_banknotes.jpg/150px-Euro_coins_and_banknotes.jpg\" alt=\"Euro coins and banknotes.jpg\" decoding=\"async\" width=\"150\" height=\"113\" data-file-width=\"2272\" data-file-height=\"1704\"></a></div></div></div><div>Related articles&nbsp;</div><div><ul><li>25 November 2021:&nbsp;<a title=\"New Zealand raises interest rates in second straight month to 0.75%\" href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\">New Zealand raises interest rates in second straight month to 0.75%</a></li><li>5 November 2021:&nbsp;<a title=\"Australian Fair Work Commission rules that farm workers on piece rate entitled to minimum wage\" href=\"https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage\" 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data-mce-href=\"https://en.m.wikinews.org/wiki/Wikinews:WRITE\">Writing an article</a></li></ul></div></div><div class=\"thumb tleft\"><div class=\"thumbinner\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/f/fd/Reserve_Bank_of_New_Zealand.jpg/220px-Reserve_Bank_of_New_Zealand.jpg\" alt=\"\" decoding=\"async\" width=\"220\" height=\"165\" class=\"thumbimage\" data-file-width=\"2592\" data-file-height=\"1944\"></a><div class=\"thumbcaption\"><span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\">Reserve Bank of New Zealand</a></span>&nbsp;headquarter in&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Wellington, New Zealand\" href=\"https://en.wikipedia.org/wiki/Wellington,_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Wellington,_New_Zealand\">Wellington</a></span>.<br><span class=\"plainlinks\">Image:&nbsp;<a class=\"extiw\" title=\"c:User:Kaihsu\" href=\"https://commons.wikimedia.org/wiki/User:Kaihsu\" data-mce-href=\"https://commons.wikimedia.org/wiki/User:Kaihsu\">Kaihsu Tai</a>.</span></div></div></div><p>The&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\">Reserve Bank of New Zealand</a></span>&nbsp;(RBNZ) raised interest rates by 25 basis points to 0.75% during its last policy meeting of the year yesterday, after the rate of consumer price inflation was recorded at 4.9% in the third quarter, the highest since December 2007.</p><p>The hike to the national&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:official cash rate\" href=\"https://en.wikipedia.org/wiki/official_cash_rate\" data-mce-href=\"https://en.wikipedia.org/wiki/official_cash_rate\">official cash rate</a></span>&nbsp;(OCR) was widely expected by economists and the markets alike: 21 of the 23 economists surveyed in a November 15-19&nbsp;<a class=\"mw-redirect\" title=\"Reuters\" href=\"https://en.m.wikinews.org/wiki/Reuters\" data-mce-href=\"https://en.m.wikinews.org/wiki/Reuters\">Reuters</a>&nbsp;poll predicted an increase of 25 basis points, while the other two projected an increase by 50 basis points, to 1%.</p><p><a class=\"mw-redirect\" title=\"New Zealand\" href=\"https://en.m.wikinews.org/wiki/New_Zealand\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand\">New Zealand</a>'s handling of&nbsp;<a class=\"mw-redirect\" title=\"COVID-19\" href=\"https://en.m.wikinews.org/wiki/COVID-19\" data-mce-href=\"https://en.m.wikinews.org/wiki/COVID-19\">COVID-19</a>&nbsp;included injecting \"huge amounts of fiscal and monetary stimulus\" into the economy, according to&nbsp;<em><a class=\"mw-redirect\" title=\"The Guardian\" href=\"https://en.m.wikinews.org/wiki/The_Guardian\" data-mce-href=\"https://en.m.wikinews.org/wiki/The_Guardian\">The Guardian</a></em>, in line with other major economies, which has pushed the unemployment rate to the lowest and inflation to its highest in over a decade. Stimulus spending and low interest rates, along with a shortage in housing led home prices to double in the last seven years, the least affordable of the&nbsp;<a class=\"mw-redirect\" title=\"OECD\" href=\"https://en.m.wikinews.org/wiki/OECD\" data-mce-href=\"https://en.m.wikinews.org/wiki/OECD\">OECD</a>&nbsp;nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation [accentuated] by higher oil prices, rising transport costs and the impact of supply shortfalls\" are risking \"generating more generalised price rises\", as reported by&nbsp;<a class=\"mw-redirect\" title=\"ABC News (Australia)\" href=\"https://en.m.wikinews.org/wiki/ABC_News_(Australia)\" data-mce-href=\"https://en.m.wikinews.org/wiki/ABC_News_(Australia)\">ABC News</a>. The RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024, according to Reuters; however, medians from a Friday article predicted the OCR would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Capital Economics\" href=\"https://en.wikipedia.org/wiki/Capital_Economics\" data-mce-href=\"https://en.wikipedia.org/wiki/Capital_Economics\">Capital Economics</a></span>&nbsp;Ben Udy, to a high of 3% by Q3 2023 according to acting chief economist at&nbsp;<a class=\"mw-redirect\" title=\"Westpac\" href=\"https://en.m.wikinews.org/wiki/Westpac\" data-mce-href=\"https://en.m.wikinews.org/wiki/Westpac\">Westpac</a>&nbsp;Michael Gordon, including a 0.5% rate hike during the RBNZ's next meeting in February, as reported by&nbsp;<em>The Guardian</em>.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to 0.5% on October 6, the first in seven years, as part of the RBNZ's tightening cycle initially slated to begin August but pushed back due to the&nbsp;<a class=\"mw-redirect\" title=\"SARS-CoV-2 Delta variant\" href=\"https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant\" data-mce-href=\"https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant\">Delta variant</a>&nbsp;of COVID-19 and lockdown in the capital city&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Auckland\" href=\"https://en.wikipedia.org/wiki/Auckland\" data-mce-href=\"https://en.wikipedia.org/wiki/Auckland\">Auckland</a></span>. Senior market strategist at the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Bank_of_New_Zealand\">Bank of New Zealand</a></span>&nbsp;Jason Wong told Reuters then: \"We're on a path towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25 basis points back to levels where the OCR is marginally above the neutral rate as the most balanced approach we can take\", though Reuters reports the bank had considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with extremely high leverage levels have to be incredibly wary and have to understand they have to weather the higher interest rates\", after earlier taxes levied on property investors failed to cool rising house prices, which Reuters reports the RBNZ believes are above their sustainable level, and at increased chance for a correction. He also defended the stimulus but noted the growth in household debt ensuing.</p><div class=\"thumb tright\"><div class=\"thumbinner\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/d/dd/Jerome_H._Powell.jpg/220px-Jerome_H._Powell.jpg\" alt=\"\" decoding=\"async\" width=\"220\" height=\"275\" class=\"thumbimage\" data-file-width=\"2400\" data-file-height=\"3000\"></a><div class=\"thumbcaption\"><span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Jerome Powell\" href=\"https://en.wikipedia.org/wiki/Jerome_Powell\" data-mce-href=\"https://en.wikipedia.org/wiki/Jerome_Powell\">Jerome Powell</a></span>, chair of the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Federal Reserve\" href=\"https://en.wikipedia.org/wiki/Federal_Reserve\" data-mce-href=\"https://en.wikipedia.org/wiki/Federal_Reserve\">Federal Reserve</a></span>.<br><span class=\"plainlinks\">Image: Federal Reserve.</span></div></div></div><p>While countries globally are winding down pandemic-related stimulus measures, according to Reuters, there has been pushback from some countries when it comes to raising interest rates: in the&nbsp;<a class=\"mw-redirect\" title=\"United States\" href=\"https://en.m.wikinews.org/wiki/United_States\" data-mce-href=\"https://en.m.wikinews.org/wiki/United_States\">United States</a>, the inflation rate recently rose to 6.2%, the highest in 31 years, which has led some economists to put pressure on&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Federal Reserve\" href=\"https://en.wikipedia.org/wiki/Federal_Reserve\" data-mce-href=\"https://en.wikipedia.org/wiki/Federal_Reserve\">Federal Reserve</a></span>&nbsp;chair&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Jerome Powell\" href=\"https://en.wikipedia.org/wiki/Jerome_Powell\" data-mce-href=\"https://en.wikipedia.org/wiki/Jerome_Powell\">Jerome Powell</a></span>&nbsp;to accelerate the process of tapering its monthly bond purchases, according to the&nbsp;<a class=\"mw-redirect\" title=\"Associated Press\" href=\"https://en.m.wikinews.org/wiki/Associated_Press\" data-mce-href=\"https://en.m.wikinews.org/wiki/Associated_Press\">Associated Press</a>. The&nbsp;<a class=\"mw-redirect\" title=\"Bank of England\" href=\"https://en.m.wikinews.org/wiki/Bank_of_England\" data-mce-href=\"https://en.m.wikinews.org/wiki/Bank_of_England\">Bank of England</a>&nbsp;and&nbsp;<a class=\"mw-redirect\" title=\"European Central Bank\" href=\"https://en.m.wikinews.org/wiki/European_Central_Bank\" data-mce-href=\"https://en.m.wikinews.org/wiki/European_Central_Bank\">European Central Bank</a>&nbsp;(ECB) also both withstood criticism for a forecasted rise in inflationary pressures, according to The Guardian and Reuters.</p><p>ECB President&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Christine Lagarde\" href=\"https://en.wikipedia.org/wiki/Christine_Lagarde\" data-mce-href=\"https://en.wikipedia.org/wiki/Christine_Lagarde\">Christine Lagarde</a></span>&nbsp;told the&nbsp;<a class=\"mw-redirect\" title=\"European Parliament\" href=\"https://en.m.wikinews.org/wiki/European_Parliament\" data-mce-href=\"https://en.m.wikinews.org/wiki/European_Parliament\">European Parliament</a>&nbsp;on November 15 \"an undue tightening of financing conditions is not desirable, and would represent an unwarranted headwind for the recovery\", adding \"[i]f we were to take any tightening measures now, it could cause far more harm than it would do any good\", as reported by Reuters.</p><p><a class=\"mw-redirect\" title=\"Australia\" href=\"https://en.m.wikinews.org/wiki/Australia\" data-mce-href=\"https://en.m.wikinews.org/wiki/Australia\">Australia</a>'s&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of Australia\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia\">Reserve Bank of Australia</a></span>&nbsp;(RBA) maintained its position that interest rates are not likely to rise until 2024. RBA Governor&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Philip Lowe\" href=\"https://en.wikipedia.org/wiki/Philip_Lowe\" data-mce-href=\"https://en.wikipedia.org/wiki/Philip_Lowe\">Philip Lowe</a></span>&nbsp;told an Australian Businesses Economists lunch last week \"the latest data and forecasts do not warrant an increase in the cash rate in 2022\", and for one to be considered by the board \"[t]he economy and inflation would have to turn out very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand: Reuters names&nbsp;<a class=\"mw-redirect\" title=\"Norway\" href=\"https://en.m.wikinews.org/wiki/Norway\" data-mce-href=\"https://en.m.wikinews.org/wiki/Norway\">Norway</a>, the&nbsp;<a class=\"mw-redirect\" title=\"Czech Republic\" href=\"https://en.m.wikinews.org/wiki/Czech_Republic\" data-mce-href=\"https://en.m.wikinews.org/wiki/Czech_Republic\">Czech Republic</a>&nbsp;and&nbsp;<a class=\"mw-redirect\" title=\"South Korea\" href=\"https://en.m.wikinews.org/wiki/South_Korea\" data-mce-href=\"https://en.m.wikinews.org/wiki/South_Korea\">South Korea</a>, which is expected to raise rates again in a meeting today.</p><p>Reuters reports the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:New Zealand dollar\" href=\"https://en.wikipedia.org/wiki/New_Zealand_dollar\" data-mce-href=\"https://en.wikipedia.org/wiki/New_Zealand_dollar\">New Zealand dollar</a></span>&nbsp;fell 0.6% due to some investors predicting a higher hike, and both 2- and 10-year government bonds slipped by 10 basis points each.</p><p><br></p><div align=\"center\"><div id=\"commentrequest\" class=\"noprint messagebox boilerplate plainlinks\"><p>Have an opinion on this story?&nbsp;<a title=\"Comments:New Zealand raises interest rates in second straight month to 0.75%\" 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month to 0.75%</h1><div class=\"tagline\"><br></div></div><nav class=\"page-actions-menu\"><ul id=\"page-actions\" class=\"page-actions-menu__list\"><li id=\"language-selector\" class=\"page-actions-menu__list-item\"><a id=\"\" class=\"mw-ui-icon mw-ui-icon-element mw-ui-icon-wikimedia-language-base20 mw-ui-button mw-ui-quiet mw-ui-icon-with-label-desktop mw-ui-button mw-ui-quiet  language-selector disabled\" title=\"Language\" role=\"button\" href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\" data-mw=\"interface\" data-event-name=\"menu.languages\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\">Language</a></li><li id=\"minerva-download\" class=\"mw-list-item mw-list-item-js page-actions-menu__list-item\" data-minerva-portlet=\"true\"><a accesskey=\"p\" title=\"Download PDF [alt-p]\" 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id=\"mw-content-text\" class=\"mw-body-content mw-content-ltr\" dir=\"ltr\" lang=\"en\"><div class=\"mw-parser-output\"><section id=\"mf-section-0\" class=\"mf-section-0\"><p><strong class=\"published\"><span id=\"publishDate\" class=\"value-title\" title=\"2021-11-25\"></span>Thursday, November 25, 2021</strong></p><div class=\"infobox noprint desktop-only\"><div><strong><a class=\"mw-redirect\" title=\"Economy and business\" href=\"https://en.m.wikinews.org/wiki/Economy_and_business\" data-mce-href=\"https://en.m.wikinews.org/wiki/Economy_and_business\">Economy and business</a></strong></div><div><div class=\"center\"><div class=\"floatnone\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/6/65/Euro_coins_and_banknotes.jpg/150px-Euro_coins_and_banknotes.jpg\" alt=\"Euro coins and banknotes.jpg\" decoding=\"async\" width=\"150\" height=\"113\" data-file-width=\"2272\" data-file-height=\"1704\"></a></div></div></div><div>Related articles</div><div><ul><li>25 November 2021:&nbsp;<a title=\"New Zealand raises interest rates in second straight month to 0.75%\" href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\">New Zealand raises interest rates in second straight month to 0.75%</a></li><li>5 November 2021:&nbsp;<a title=\"Australian Fair Work Commission rules that farm workers on piece rate entitled to minimum wage\" href=\"https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage\" data-mce-href=\"https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage\">Australian Fair 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data-mce-href=\"https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/f/fd/Reserve_Bank_of_New_Zealand.jpg/220px-Reserve_Bank_of_New_Zealand.jpg\" alt=\"\" decoding=\"async\" width=\"220\" height=\"165\" class=\"thumbimage\" data-file-width=\"2592\" data-file-height=\"1944\"></a><div class=\"thumbcaption\"><span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\">Reserve Bank of New Zealand</a></span>&nbsp;headquarters in&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Wellington, New Zealand\" href=\"https://en.wikipedia.org/wiki/Wellington,_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Wellington,_New_Zealand\">Wellington</a></span>.<br><span class=\"plainlinks\">Image:&nbsp;<a class=\"extiw\" title=\"c:User:Kaihsu\" href=\"https://commons.wikimedia.org/wiki/User:Kaihsu\" data-mce-href=\"https://commons.wikimedia.org/wiki/User:Kaihsu\">Kaihsu Tai</a>.</span></div></div></div><p>The&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\">Reserve Bank of New Zealand</a></span>&nbsp;(RBNZ) raised interest rates by 25 basis points to 0.75% during its last policy meeting of the year yesterday, after the rate of consumer price inflation was recorded at 4.9% in the third quarter, the highest since December 2007.</p><p>The hike to the national&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:official cash rate\" href=\"https://en.wikipedia.org/wiki/official_cash_rate\" data-mce-href=\"https://en.wikipedia.org/wiki/official_cash_rate\">official cash rate</a></span>&nbsp;(OCR) was widely expected by economists and the markets alike: 21 of the 23 economists surveyed in a November 15-19&nbsp;<a class=\"mw-redirect\" title=\"Reuters\" href=\"https://en.m.wikinews.org/wiki/Reuters\" data-mce-href=\"https://en.m.wikinews.org/wiki/Reuters\">Reuters</a>&nbsp;poll predicted an increase of 25 basis points, while the other two projected an increase by 50 basis points, to 1%.</p><p><a class=\"mw-redirect\" title=\"New Zealand\" href=\"https://en.m.wikinews.org/wiki/New_Zealand\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand\">New Zealand</a>'s handling of&nbsp;<a class=\"mw-redirect\" title=\"COVID-19\" href=\"https://en.m.wikinews.org/wiki/COVID-19\" data-mce-href=\"https://en.m.wikinews.org/wiki/COVID-19\">COVID-19</a>&nbsp;included injecting \"huge amounts of fiscal and monetary stimulus\" into the economy, according to&nbsp;<em><a class=\"mw-redirect\" title=\"The Guardian\" href=\"https://en.m.wikinews.org/wiki/The_Guardian\" data-mce-href=\"https://en.m.wikinews.org/wiki/The_Guardian\">The Guardian</a></em>, in line with other major economies, which has pushed the unemployment rate to the lowest and inflation to its highest in over a decade. Stimulus spending and low interest rates, along with a shortage in housing led home prices to double in the last seven years, the least affordable of the&nbsp;<a class=\"mw-redirect\" title=\"OECD\" href=\"https://en.m.wikinews.org/wiki/OECD\" data-mce-href=\"https://en.m.wikinews.org/wiki/OECD\">OECD</a>&nbsp;nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation [accentuated] by higher oil prices, rising transport costs and the impact of supply shortfalls\" are risking \"generating more generalised price rises\", as reported by&nbsp;<a class=\"mw-redirect\" title=\"ABC News (Australia)\" href=\"https://en.m.wikinews.org/wiki/ABC_News_(Australia)\" data-mce-href=\"https://en.m.wikinews.org/wiki/ABC_News_(Australia)\">ABC News</a>. The RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024, according to Reuters; however, medians from a Friday article predicted the OCR would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Capital Economics\" href=\"https://en.wikipedia.org/wiki/Capital_Economics\" data-mce-href=\"https://en.wikipedia.org/wiki/Capital_Economics\">Capital Economics</a></span>&nbsp;Ben Udy, to a high of 3% by Q3 2023 according to acting chief economist at&nbsp;<a class=\"mw-redirect\" title=\"Westpac\" href=\"https://en.m.wikinews.org/wiki/Westpac\" data-mce-href=\"https://en.m.wikinews.org/wiki/Westpac\">Westpac</a>&nbsp;Michael Gordon, including a 0.5% rate hike during the RBNZ's next meeting in February, as reported by&nbsp;<em>The Guardian</em>.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to 0.5% on October 6, the first in seven years, as part of the RBNZ's tightening cycle initially slated to begin August but pushed back due to the&nbsp;<a class=\"mw-redirect\" title=\"SARS-CoV-2 Delta variant\" href=\"https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant\" data-mce-href=\"https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant\">Delta variant</a>&nbsp;of COVID-19 and lockdown in the capital city&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Auckland\" href=\"https://en.wikipedia.org/wiki/Auckland\" data-mce-href=\"https://en.wikipedia.org/wiki/Auckland\">Auckland</a></span>. Senior market strategist at the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Bank_of_New_Zealand\">Bank of New Zealand</a></span>&nbsp;Jason Wong told Reuters then: \"We're on a path towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25 basis points back to levels where the OCR is marginally above the neutral rate as the most balanced approach we can take\", though Reuters reports the bank had considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with extremely high leverage levels have to be incredibly wary and have to understand they have to weather the higher interest rates\", after earlier taxes levied on property investors failed to cool rising house prices, which Reuters reports the RBNZ believes are above their sustainable level, and at increased chance for a correction. He also defended the stimulus but noted the growth in household debt ensuing.</p><div class=\"thumb tright\"><div class=\"thumbinner\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/d/dd/Jerome_H._Powell.jpg/220px-Jerome_H._Powell.jpg\" alt=\"\" decoding=\"async\" width=\"220\" height=\"275\" class=\"thumbimage\" data-file-width=\"2400\" data-file-height=\"3000\"></a><div class=\"thumbcaption\"><span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Jerome Powell\" href=\"https://en.wikipedia.org/wiki/Jerome_Powell\" data-mce-href=\"https://en.wikipedia.org/wiki/Jerome_Powell\">Jerome Powell</a></span>, chair of the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Federal Reserve\" href=\"https://en.wikipedia.org/wiki/Federal_Reserve\" data-mce-href=\"https://en.wikipedia.org/wiki/Federal_Reserve\">Federal Reserve</a></span>.<br><span class=\"plainlinks\">Image: Federal Reserve.</span></div></div></div><p>While countries globally are winding down pandemic-related stimulus measures, according to Reuters, there has been pushback from some countries when it comes to raising interest rates: in the <a class=\"mw-redirect\" title=\"United States\" href=\"https://en.m.wikinews.org/wiki/United_States\" data-mce-href=\"https://en.m.wikinews.org/wiki/United_States\">United States</a>, the inflation rate recently rose to 6.2%, the highest in 31 years, which has led some economists to put pressure on&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Federal Reserve\" href=\"https://en.wikipedia.org/wiki/Federal_Reserve\" data-mce-href=\"https://en.wikipedia.org/wiki/Federal_Reserve\">Federal Reserve</a></span>&nbsp;chair&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Jerome Powell\" href=\"https://en.wikipedia.org/wiki/Jerome_Powell\" data-mce-href=\"https://en.wikipedia.org/wiki/Jerome_Powell\">Jerome Powell</a></span>&nbsp;to accelerate the process of tapering its monthly bond purchases, according to the&nbsp;<a class=\"mw-redirect\" title=\"Associated Press\" href=\"https://en.m.wikinews.org/wiki/Associated_Press\" data-mce-href=\"https://en.m.wikinews.org/wiki/Associated_Press\">Associated Press</a>. The&nbsp;<a class=\"mw-redirect\" title=\"Bank of England\" href=\"https://en.m.wikinews.org/wiki/Bank_of_England\" data-mce-href=\"https://en.m.wikinews.org/wiki/Bank_of_England\">Bank of England</a>&nbsp;and&nbsp;<a class=\"mw-redirect\" title=\"European Central Bank\" href=\"https://en.m.wikinews.org/wiki/European_Central_Bank\" data-mce-href=\"https://en.m.wikinews.org/wiki/European_Central_Bank\">European Central Bank</a>&nbsp;(ECB) also both withstood criticism for a forecasted rise in inflationary pressures, according to The Guardian and Reuters.</p><p>ECB President&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Christine Lagarde\" href=\"https://en.wikipedia.org/wiki/Christine_Lagarde\" data-mce-href=\"https://en.wikipedia.org/wiki/Christine_Lagarde\">Christine Lagarde</a></span>&nbsp;told the&nbsp;<a class=\"mw-redirect\" title=\"European Parliament\" href=\"https://en.m.wikinews.org/wiki/European_Parliament\" data-mce-href=\"https://en.m.wikinews.org/wiki/European_Parliament\">European Parliament</a>&nbsp;on November 15 \"an undue tightening of financing conditions is not desirable, and would represent an unwarranted headwind for the recovery\", adding \"[i]f we were to take any tightening measures now, it could cause far more harm than it would do any good\", as reported by Reuters.</p><p><a class=\"mw-redirect\" title=\"Australia\" href=\"https://en.m.wikinews.org/wiki/Australia\" data-mce-href=\"https://en.m.wikinews.org/wiki/Australia\">Australia</a>'s&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of Australia\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia\">Reserve Bank of Australia</a></span>&nbsp;(RBA) maintained its position that interest rates are not likely to rise until 2024. RBA Governor&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Philip Lowe\" href=\"https://en.wikipedia.org/wiki/Philip_Lowe\" data-mce-href=\"https://en.wikipedia.org/wiki/Philip_Lowe\">Philip Lowe</a></span>&nbsp;told an Australian Businesses Economists lunch last week \"the latest data and forecasts do not warrant an increase in the cash rate in 2022\", and for one to be considered by the board \"[t]he economy and inflation would have to turn out very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand: Reuters names&nbsp;<a class=\"mw-redirect\" title=\"Norway\" href=\"https://en.m.wikinews.org/wiki/Norway\" data-mce-href=\"https://en.m.wikinews.org/wiki/Norway\">Norway</a>, the&nbsp;<a class=\"mw-redirect\" title=\"Czech Republic\" href=\"https://en.m.wikinews.org/wiki/Czech_Republic\" data-mce-href=\"https://en.m.wikinews.org/wiki/Czech_Republic\">Czech Republic</a>&nbsp;and&nbsp;<a class=\"mw-redirect\" title=\"South Korea\" href=\"https://en.m.wikinews.org/wiki/South_Korea\" data-mce-href=\"https://en.m.wikinews.org/wiki/South_Korea\">South Korea</a>, which is expected to raise rates again in a meeting today.</p><p>Reuters reports the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:New Zealand dollar\" href=\"https://en.wikipedia.org/wiki/New_Zealand_dollar\" data-mce-href=\"https://en.wikipedia.org/wiki/New_Zealand_dollar\">New Zealand dollar</a></span>&nbsp;fell 0.6% due to some investors predicting a higher hike, and both 2- and 10-year government bonds slipped by 10 basis points each.</p><p><br></p><div align=\"center\"><div id=\"commentrequest\" class=\"noprint messagebox boilerplate plainlinks\"><p>Have an opinion on this story?&nbsp;<a title=\"Comments:New Zealand raises interest rates in second straight month to 0.75%\" 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article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points to 0.75% during its last policy meeting of the year yesterday, after the rate of consumer price inflation was recorded at 4.9% in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by economists and the markets alike: 21 of the 23 economists surveyed in a November 15-19 Reuters poll predicted an increase of 25 basis points, while the other two projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal and monetary stimulus\" into the economy, according to The Guardian, in line with other major economies, which has pushed the unemployment rate to the lowest and inflation to its highest in over a decade. Stimulus spending and low interest rates, along with a shortage in housing led home prices to double in the last seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation [accentuated] by higher oil prices, rising transport costs and the impact of supply shortfalls\" are risking \"generating more generalised price rises\", as reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024, according to Reuters; however, medians from a Friday article predicted the OCR would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief economist at Westpac Michael Gordon, including a 0.5% rate hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to 0.5% on October 6, the first in seven years, as part of the RBNZ's tightening cycle initially slated to begin August but pushed back due to the Delta variant of COVID-19 and lockdown in the capital city Auckland. Senior market strategist at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25 basis points back to levels where the OCR is marginally above the neutral rate as the most balanced approach we can take\", though Reuters reports the bank had considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with extremely high leverage levels have to be incredibly wary and have to understand they have to weather the higher interest rates\", after earlier taxes levied on property investors failed to cool rising house prices, which Reuters reports the RBNZ believes are above their sustainable level, and at increased chance for a correction. He also defended the stimulus but noted the growth in household debt ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures, according to Reuters, there has been pushback from some countries when it comes to raising interest rates: in the United States, the inflation rate recently rose to 6.2%, the highest in 31 years, which has led some economists to put pressure on Federal Reserve chair Jerome Powell to accelerate the process of tapering its monthly bond purchases, according to the Associated Press. The Bank of England and European Central Bank (ECB) also both withstood criticism for a forecasted rise in inflationary pressures, according to The Guardian and Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an undue tightening of financing conditions is not desirable, and would represent an unwarranted headwind for the recovery\", adding \"[i]f we were to take any tightening measures now, it could cause far more harm than it would do any good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told an Australian Businesses Economists lunch last week \"the latest data and forecasts do not warrant an increase in the cash rate in 2022\", and for one to be considered by the board \"[t]he economy and inflation would have to turn out very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand: Reuters names Norway, the Czech Republic and South Korea, which is expected to raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors predicting a higher hike, and both 2- and 10-year government bonds slipped by 10 basis points each.</p><p><br></p><p>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><header class=\"header-container header-chrome\"><form class=\"minerva-header\" action=\"https://en.m.wikinews.org/w/index.php\" method=\"get\"><nav class=\"navigation-drawer toggle-list view-border-box\"><input id=\"main-menu-input\" class=\"toggle-list__checkbox\" role=\"button\" type=\"checkbox\" aria-labelledby=\"mw-mf-main-menu-button\"><label id=\"mw-mf-main-menu-button\" class=\" mw-ui-button mw-ui-quiet mw-ui-icon mw-ui-icon-element mw-ui-icon-wikimedia-menu-base20 mw-ui-icon-flush-left toggle-list__toggle\" title=\"Open main menu\" for=\"main-menu-input\" data-event-name=\"ui.mainmenu\">Open main menu</label><div id=\"mw-mf-page-left\" class=\"menu toggle-list__list view-border-box\"><ul id=\"p-navigation\"><li class=\"\"><br></li><li 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id=\"mw-content-text\" class=\"mw-body-content mw-content-ltr\" dir=\"ltr\" lang=\"en\"><div class=\"mw-parser-output\"><section id=\"mf-section-0\" class=\"mf-section-0\"><p><strong class=\"published\"><span id=\"publishDate\" class=\"value-title\" title=\"2021-11-25\"></span>Thursday, November 25, 2021</strong></p><div class=\"infobox noprint desktop-only\"><div><strong><a class=\"mw-redirect\" title=\"Economy and business\" href=\"https://en.m.wikinews.org/wiki/Economy_and_business\" data-mce-href=\"https://en.m.wikinews.org/wiki/Economy_and_business\">Economy and business</a></strong></div><div><div class=\"center\"><div class=\"floatnone\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/6/65/Euro_coins_and_banknotes.jpg/150px-Euro_coins_and_banknotes.jpg\" alt=\"Euro coins and banknotes.jpg\" decoding=\"async\" width=\"150\" height=\"113\" data-file-width=\"2272\" data-file-height=\"1704\"></a></div></div></div><div>Related articles</div><div><ul><li>25 November 2021:&nbsp;<a title=\"New Zealand raises interest rates in second straight month to 0.75%\" href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25\">New Zealand raises interest rates in second straight month to 0.75%</a></li><li>5 November 2021:&nbsp;<a title=\"Australian Fair Work Commission rules that farm workers on piece rate entitled to minimum wage\" href=\"https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage\" data-mce-href=\"https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage\">Australian Fair 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by any 'entity'\" href=\"https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27\" data-mce-href=\"https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27\">Texas governor bans COVID-19 vaccine mandate by any 'entity'</a></li></ul></div><div>Collaborate!</div><div><ul><li><a class=\"mw-redirect\" title=\"Wikinews:PILLARS\" href=\"https://en.m.wikinews.org/wiki/Wikinews:PILLARS\" data-mce-href=\"https://en.m.wikinews.org/wiki/Wikinews:PILLARS\">Pillars of Wikinews writing</a></li><li><a class=\"mw-redirect\" title=\"Wikinews:WRITE\" href=\"https://en.m.wikinews.org/wiki/Wikinews:WRITE\" data-mce-href=\"https://en.m.wikinews.org/wiki/Wikinews:WRITE\">Writing an article</a></li></ul></div></div><div class=\"thumb tleft\"><div class=\"thumbinner\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/f/fd/Reserve_Bank_of_New_Zealand.jpg/220px-Reserve_Bank_of_New_Zealand.jpg\" alt=\"\" decoding=\"async\" width=\"220\" height=\"165\" class=\"thumbimage\" data-file-width=\"2592\" data-file-height=\"1944\"></a><div class=\"thumbcaption\"><span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\">Reserve Bank of New Zealand</a></span>&nbsp;headquarters in&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Wellington, New Zealand\" href=\"https://en.wikipedia.org/wiki/Wellington,_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Wellington,_New_Zealand\">Wellington</a></span>.<br><span class=\"plainlinks\">Image:&nbsp;<a class=\"extiw\" title=\"c:User:Kaihsu\" href=\"https://commons.wikimedia.org/wiki/User:Kaihsu\" data-mce-href=\"https://commons.wikimedia.org/wiki/User:Kaihsu\">Kaihsu Tai</a>.</span></div></div></div><p>The&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand\">Reserve Bank of New Zealand</a></span>&nbsp;(RBNZ) raised interest rates by 25 basis points to 0.75% during its last policy meeting of the year yesterday, after the rate of consumer price inflation was recorded at 4.9% in the third quarter, the highest since December 2007.</p><p>The hike to the national&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:official cash rate\" href=\"https://en.wikipedia.org/wiki/official_cash_rate\" data-mce-href=\"https://en.wikipedia.org/wiki/official_cash_rate\">official cash rate</a></span>&nbsp;(OCR) was widely expected by economists and the markets alike: 21 of the 23 economists surveyed in a November 15-19&nbsp;<a class=\"mw-redirect\" title=\"Reuters\" href=\"https://en.m.wikinews.org/wiki/Reuters\" data-mce-href=\"https://en.m.wikinews.org/wiki/Reuters\">Reuters</a>&nbsp;poll predicted an increase of 25 basis points, while the other two projected an increase by 50 basis points, to 1%.</p><p><a class=\"mw-redirect\" title=\"New Zealand\" href=\"https://en.m.wikinews.org/wiki/New_Zealand\" data-mce-href=\"https://en.m.wikinews.org/wiki/New_Zealand\">New Zealand</a>'s handling of&nbsp;<a class=\"mw-redirect\" title=\"COVID-19\" href=\"https://en.m.wikinews.org/wiki/COVID-19\" data-mce-href=\"https://en.m.wikinews.org/wiki/COVID-19\">COVID-19</a>&nbsp;included injecting \"huge amounts of fiscal and monetary stimulus\" into the economy, according to&nbsp;<em><a class=\"mw-redirect\" title=\"The Guardian\" href=\"https://en.m.wikinews.org/wiki/The_Guardian\" data-mce-href=\"https://en.m.wikinews.org/wiki/The_Guardian\">The Guardian</a></em>, in line with other major economies, which has pushed the unemployment rate to the lowest and inflation to its highest in over a decade. Stimulus spending and low interest rates, along with a shortage in housing led home prices to double in the last seven years, the least affordable of the&nbsp;<a class=\"mw-redirect\" title=\"OECD\" href=\"https://en.m.wikinews.org/wiki/OECD\" data-mce-href=\"https://en.m.wikinews.org/wiki/OECD\">OECD</a>&nbsp;nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation [accentuated] by higher oil prices, rising transport costs and the impact of supply shortfalls\" are risking \"generating more generalised price rises\", as reported by&nbsp;<a class=\"mw-redirect\" title=\"ABC News (Australia)\" href=\"https://en.m.wikinews.org/wiki/ABC_News_(Australia)\" data-mce-href=\"https://en.m.wikinews.org/wiki/ABC_News_(Australia)\">ABC News</a>. The RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024, according to Reuters; however, medians from a Friday article predicted the OCR would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Capital Economics\" href=\"https://en.wikipedia.org/wiki/Capital_Economics\" data-mce-href=\"https://en.wikipedia.org/wiki/Capital_Economics\">Capital Economics</a></span>&nbsp;Ben Udy, to a high of 3% by Q3 2023 according to acting chief economist at&nbsp;<a class=\"mw-redirect\" title=\"Westpac\" href=\"https://en.m.wikinews.org/wiki/Westpac\" data-mce-href=\"https://en.m.wikinews.org/wiki/Westpac\">Westpac</a>&nbsp;Michael Gordon, including a 0.5% rate hike during the RBNZ's next meeting in February, as reported by&nbsp;<em>The Guardian</em>.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to 0.5% on October 6, the first in seven years, as part of the RBNZ's tightening cycle initially slated to begin August but pushed back due to the&nbsp;<a class=\"mw-redirect\" title=\"SARS-CoV-2 Delta variant\" href=\"https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant\" data-mce-href=\"https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant\">Delta variant</a>&nbsp;of COVID-19 and lockdown in the capital city&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Auckland\" href=\"https://en.wikipedia.org/wiki/Auckland\" data-mce-href=\"https://en.wikipedia.org/wiki/Auckland\">Auckland</a></span>. Senior market strategist at the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Bank of New Zealand\" href=\"https://en.wikipedia.org/wiki/Bank_of_New_Zealand\" data-mce-href=\"https://en.wikipedia.org/wiki/Bank_of_New_Zealand\">Bank of New Zealand</a></span>&nbsp;Jason Wong told Reuters then: \"We're on a path towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25 basis points back to levels where the OCR is marginally above the neutral rate as the most balanced approach we can take\", though Reuters reports the bank had considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with extremely high leverage levels have to be incredibly wary and have to understand they have to weather the higher interest rates\", after earlier taxes levied on property investors failed to cool rising house prices, which Reuters reports the RBNZ believes are above their sustainable level, and at increased chance for a correction. He also defended the stimulus but noted the growth in household debt ensuing.</p><div class=\"thumb tright\"><div class=\"thumbinner\"><a class=\"image\" href=\"https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg\" data-mce-href=\"https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/d/dd/Jerome_H._Powell.jpg/220px-Jerome_H._Powell.jpg\" alt=\"\" decoding=\"async\" width=\"220\" height=\"275\" class=\"thumbimage\" data-file-width=\"2400\" data-file-height=\"3000\"></a><div class=\"thumbcaption\"><span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Jerome Powell\" href=\"https://en.wikipedia.org/wiki/Jerome_Powell\" data-mce-href=\"https://en.wikipedia.org/wiki/Jerome_Powell\">Jerome Powell</a></span>, chair of the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Federal Reserve\" href=\"https://en.wikipedia.org/wiki/Federal_Reserve\" data-mce-href=\"https://en.wikipedia.org/wiki/Federal_Reserve\">Federal Reserve</a></span>.<br><span class=\"plainlinks\">Image: Federal Reserve.</span></div></div></div><p>While countries globally are winding down pandemic-related stimulus measures, according to Reuters, there has been pushback from some countries when it comes to raising interest rates: in the&nbsp;<a class=\"mw-redirect\" title=\"United States\" href=\"https://en.m.wikinews.org/wiki/United_States\" data-mce-href=\"https://en.m.wikinews.org/wiki/United_States\">United States</a>, the inflation rate recently rose to 6.2%, the highest in 31 years, which has led some economists to put pressure on&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Federal Reserve\" href=\"https://en.wikipedia.org/wiki/Federal_Reserve\" data-mce-href=\"https://en.wikipedia.org/wiki/Federal_Reserve\">Federal Reserve</a></span>&nbsp;chair&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Jerome Powell\" href=\"https://en.wikipedia.org/wiki/Jerome_Powell\" data-mce-href=\"https://en.wikipedia.org/wiki/Jerome_Powell\">Jerome Powell</a></span>&nbsp;to accelerate the process of tapering its monthly bond purchases, according to the&nbsp;<a class=\"mw-redirect\" title=\"Associated Press\" href=\"https://en.m.wikinews.org/wiki/Associated_Press\" data-mce-href=\"https://en.m.wikinews.org/wiki/Associated_Press\">Associated Press</a>. The&nbsp;<a class=\"mw-redirect\" title=\"Bank of England\" href=\"https://en.m.wikinews.org/wiki/Bank_of_England\" data-mce-href=\"https://en.m.wikinews.org/wiki/Bank_of_England\">Bank of England</a>&nbsp;and&nbsp;<a class=\"mw-redirect\" title=\"European Central Bank\" href=\"https://en.m.wikinews.org/wiki/European_Central_Bank\" data-mce-href=\"https://en.m.wikinews.org/wiki/European_Central_Bank\">European Central Bank</a>&nbsp;(ECB) also both withstood criticism for a forecasted rise in inflationary pressures, according to The Guardian and Reuters.</p><p>ECB President&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Christine Lagarde\" href=\"https://en.wikipedia.org/wiki/Christine_Lagarde\" data-mce-href=\"https://en.wikipedia.org/wiki/Christine_Lagarde\">Christine Lagarde</a></span>&nbsp;told the&nbsp;<a class=\"mw-redirect\" title=\"European Parliament\" href=\"https://en.m.wikinews.org/wiki/European_Parliament\" data-mce-href=\"https://en.m.wikinews.org/wiki/European_Parliament\">European Parliament</a>&nbsp;on November 15 \"an undue tightening of financing conditions is not desirable, and would represent an unwarranted headwind for the recovery\", adding \"[i]f we were to take any tightening measures now, it could cause far more harm than it would do any good\", as reported by Reuters.</p><p><a class=\"mw-redirect\" title=\"Australia\" href=\"https://en.m.wikinews.org/wiki/Australia\" data-mce-href=\"https://en.m.wikinews.org/wiki/Australia\">Australia</a>'s&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Reserve Bank of Australia\" href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia\" data-mce-href=\"https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia\">Reserve Bank of Australia</a></span>&nbsp;(RBA) maintained its position that interest rates are not likely to rise until 2024. RBA Governor&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:Philip Lowe\" href=\"https://en.wikipedia.org/wiki/Philip_Lowe\" data-mce-href=\"https://en.wikipedia.org/wiki/Philip_Lowe\">Philip Lowe</a></span>&nbsp;told an Australian Businesses Economists lunch last week \"the latest data and forecasts do not warrant an increase in the cash rate in 2022\", and for one to be considered by the board \"[t]he economy and inflation would have to turn out very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand: Reuters names&nbsp;<a class=\"mw-redirect\" title=\"Norway\" href=\"https://en.m.wikinews.org/wiki/Norway\" data-mce-href=\"https://en.m.wikinews.org/wiki/Norway\">Norway</a>, the&nbsp;<a class=\"mw-redirect\" title=\"Czech Republic\" href=\"https://en.m.wikinews.org/wiki/Czech_Republic\" data-mce-href=\"https://en.m.wikinews.org/wiki/Czech_Republic\">Czech Republic</a>&nbsp;and&nbsp;<a class=\"mw-redirect\" title=\"South Korea\" href=\"https://en.m.wikinews.org/wiki/South_Korea\" data-mce-href=\"https://en.m.wikinews.org/wiki/South_Korea\">South Korea</a>, which is expected to raise rates again in a meeting today.</p><p>Reuters reports the&nbsp;<span class=\"interwiki-link-foreign\"><a class=\"extiw\" title=\"w:New Zealand dollar\" href=\"https://en.wikipedia.org/wiki/New_Zealand_dollar\" data-mce-href=\"https://en.wikipedia.org/wiki/New_Zealand_dollar\">New Zealand dollar</a></span>&nbsp;fell 0.6% due to some investors predicting a higher hike, and both 2- and 10-year government bonds slipped by 10 basis points each.</p><p><br></p><div align=\"center\"><div id=\"commentrequest\" class=\"noprint messagebox boilerplate plainlinks\"><p>Have an opinion on this story?&nbsp;<a title=\"Comments:New Zealand raises interest rates in second straight month to 0.75%\" 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&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p><br>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p><br>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p><br>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p><br>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p>&nbsp;* Language<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp; &nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp; &nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25] by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp; &nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menuWikinewsSearchNew Zealand&nbsp;<br>&nbsp;<br>&nbsp;Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]</p><p>Open main menu<br>Wikinews<br>Search<br>New Zealand raises interest rates in second straight month to 0.75%<br>Language<br>Download PDF<br>Watch<br>Edit<br>Thursday, November 25, 2021</p><p>Economy and business<br>Euro coins and banknotes.jpg<br>Related articles<br>25 November 2021: New Zealand raises interest rates in second straight month to<br>0.75%<br>5 November 2021: Australian Fair Work Commission rules that farm workers on<br>piece rate entitled to minimum wage<br>26 October 2021: UK pay freeze on public sector employees will end next year<br>23 October 2021: Evergrande real estate firm makes missed September bond<br>payment, avoids default<br>12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>Collaborate!<br>Pillars of Wikinews writing<br>Writing an article</p><p>Reserve Bank of New Zealand headquarters in Wellington.<br>Image: Kaihsu Tai.<br>The Reserve Bank of New Zealand (RBNZ) raised interest rates by 25 basis points<br>to 0.75% during its last policy meeting of the year yesterday, after the rate of<br>consumer price inflation was recorded at 4.9% in the third quarter, the highest<br>since December 2007.</p><p>The hike to the national official cash rate (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters poll predicted an increase of 25 basis points, while the other two<br>projected an increase by 50 basis points, to 1%.</p><p>New Zealand's handling of COVID-19 included injecting \"huge amounts of fiscal<br>and monetary stimulus\" into the economy, according to The Guardian, in line with<br>other major economies, which has pushed the unemployment rate to the lowest and<br>inflation to its highest in over a decade. Stimulus spending and low interest<br>rates, along with a shortage in housing led home prices to double in the last<br>seven years, the least affordable of the OECD nations, according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News. The RBNZ forecasts rates would rise to 2.5% by 2023, and<br>still higher by 2024, according to Reuters; however, medians from a Friday<br>article predicted the OCR would reach only 2% by year-end 2023, below what it<br>was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist at<br>Capital Economics Ben Udy, to a high of 3% by Q3 2023 according to acting chief<br>economist at Westpac Michael Gordon, including a 0.5% rate hike during the<br>RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>of COVID-19 and lockdown in the capital city Auckland. Senior market strategist<br>at the Bank of New Zealand Jason Wong told Reuters then: \"We're on a path<br>towards a series of rate hikes and the market is well priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p><br>Jerome Powell, chair of the Federal Reserve.<br>Image: Federal Reserve.<br>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States, the inflation rate recently<br>rose to 6.2%, the highest in 31 years, which has led some economists to put<br>pressure on Federal Reserve chair Jerome Powell to accelerate the process of<br>tapering its monthly bond purchases, according to the Associated Press. The Bank<br>of England and European Central Bank (ECB) also both withstood criticism for a<br>forecasted rise in inflationary pressures, according to The Guardian and<br>Reuters.</p><p>ECB President Christine Lagarde told the European Parliament on November 15 \"an<br>undue tightening of financing conditions is not desirable, and would represent<br>an unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia's Reserve Bank of Australia (RBA) maintained its position that<br>interest rates are not likely to rise until 2024. RBA Governor Philip Lowe told<br>an Australian Businesses Economists lunch last week \"the latest data and<br>forecasts do not warrant an increase in the cash rate in 2022\", and for one to<br>be considered by the board \"[t]he economy and inflation would have to turn out<br>very differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway, the Czech Republic and South Korea, which is expected to<br>raise rates again in a meeting today.</p><p>Reuters reports the New Zealand dollar fell 0.6% due to some investors<br>predicting a higher hike, and both 2- and 10-year government bonds slipped by 10<br>basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!</p><p>Sister links<br>Sources<br>Last edited 3 hours ago by LivelyRatification<br>Wikinews<br>Content is available under CC BY 2.5 unless otherwise noted.<br>Privacy policy Terms of UseDesktop&nbsp;</p><p><br></p><p><br>Open main menu<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>&nbsp;*&nbsp;<br>&nbsp; &nbsp;<br>&nbsp;*&nbsp;<br>&nbsp; &nbsp;</p><p>Wikinews [https://en.m.wikinews.org/wiki/Main_Page]<br>Search</p><p><br>NEW ZEALAND RAISES INTEREST RATES IN SECOND STRAIGHT MONTH TO 0.75%</p><p><br></p><p><br>&nbsp;* Language<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* Download PDF<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25#]<br>&nbsp;* Watch<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=Special:UserLogin&amp;returnto=New+Zealand+raises+interest+rates+in+second+straight+month+to+0.75%25]<br>&nbsp;* Edit<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;action=edit&amp;section=0]</p><p><br></p><p><br></p><p>Thursday, November 25, 2021</p><p>Economy and business [https://en.m.wikinews.org/wiki/Economy_and_business]<br>https://en.m.wikinews.org/wiki/File:Euro_coins_and_banknotes.jpg<br>Related articles<br>&nbsp;* 25 November 2021: New Zealand raises interest rates in second straight month<br>&nbsp; &nbsp;to 0.75%<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>&nbsp;* 5 November 2021: Australian Fair Work Commission rules that farm workers on<br>&nbsp; &nbsp;piece rate entitled to minimum wage<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Australian_Fair_Work_Commission_rules_that_farm_workers_on_piece_rate_entitled_to_minimum_wage]<br>&nbsp;* 26 October 2021: UK pay freeze on public sector employees will end next year<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/UK_pay_freeze_on_public_sector_employees_will_end_next_year]<br>&nbsp;* 23 October 2021: Evergrande real estate firm makes missed September bond<br>&nbsp; &nbsp;payment, avoids default<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Evergrande_real_estate_firm_makes_missed_September_bond_payment,_avoids_default]<br>&nbsp;* 12 October 2021: Texas governor bans COVID-19 vaccine mandate by any 'entity'<br>&nbsp;<br>&nbsp;[https://en.m.wikinews.org/wiki/Texas_governor_bans_COVID-19_vaccine_mandate_by_any_%27entity%27]</p><p>Collaborate!<br>&nbsp;* Pillars of Wikinews writing [https://en.m.wikinews.org/wiki/Wikinews:PILLARS]<br>&nbsp;* Writing an article [https://en.m.wikinews.org/wiki/Wikinews:WRITE]</p><p>https://en.m.wikinews.org/wiki/File:Reserve_Bank_of_New_Zealand.jpg<br>Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] headquarters<br>in Wellington [https://en.wikipedia.org/wiki/Wellington,_New_Zealand].<br>Image: Kaihsu Tai [https://commons.wikimedia.org/wiki/User:Kaihsu].</p><p>The Reserve Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_New_Zealand] (RBNZ) raised<br>interest rates by 25 basis points to 0.75% during its last policy meeting of the<br>year yesterday, after the rate of consumer price inflation was recorded at 4.9%<br>in the third quarter, the highest since December 2007.</p><p>The hike to the national official cash rate<br>[https://en.wikipedia.org/wiki/official_cash_rate] (OCR) was widely expected by<br>economists and the markets alike: 21 of the 23 economists surveyed in a November<br>15-19 Reuters [https://en.m.wikinews.org/wiki/Reuters] poll predicted an<br>increase of 25 basis points, while the other two projected an increase by 50<br>basis points, to 1%.</p><p>New Zealand [https://en.m.wikinews.org/wiki/New_Zealand]'s handling of COVID-19<br>[https://en.m.wikinews.org/wiki/COVID-19] included injecting \"huge amounts of<br>fiscal and monetary stimulus\" into the economy, according to The Guardian<br>[https://en.m.wikinews.org/wiki/The_Guardian], in line with other major<br>economies, which has pushed the unemployment rate to the lowest and inflation to<br>its highest in over a decade. Stimulus spending and low interest rates, along<br>with a shortage in housing led home prices to double in the last seven years,<br>the least affordable of the OECD [https://en.m.wikinews.org/wiki/OECD] nations,<br>according to Reuters.</p><p>A statement from the Reserve Bank said the \"near-term rise in inflation<br>[accentuated] by higher oil prices, rising transport costs and the impact of<br>supply shortfalls\" are risking \"generating more generalised price rises\", as<br>reported by ABC News [https://en.m.wikinews.org/wiki/ABC_News_(Australia)]. The<br>RBNZ forecasts rates would rise to 2.5% by 2023, and still higher by 2024,<br>according to Reuters; however, medians from a Friday article predicted the OCR<br>would reach only 2% by year-end 2023, below what it was in 2014.</p><p>More recent projections include to 2% by mid-2022 according to economist<br>at Capital Economics [https://en.wikipedia.org/wiki/Capital_Economics] Ben Udy,<br>to a high of 3% by Q3 2023 according to acting chief economist at Westpac<br>[https://en.m.wikinews.org/wiki/Westpac] Michael Gordon, including a 0.5% rate<br>hike during the RBNZ's next meeting in February, as reported by The Guardian.</p><p>Yesterday's announcement came after a widely-expected rate hike from 0.25% to<br>0.5% on October 6, the first in seven years, as part of the RBNZ's tightening<br>cycle initially slated to begin August but pushed back due to the Delta variant<br>[https://en.m.wikinews.org/wiki/SARS-CoV-2_Delta_variant] of COVID-19 and<br>lockdown in the capital city Auckland [https://en.wikipedia.org/wiki/Auckland].<br>Senior market strategist at the Bank of New Zealand<br>[https://en.wikipedia.org/wiki/Bank_of_New_Zealand] Jason Wong told Reuters<br>then: \"We're on a path towards a series of rate hikes and the market is well<br>priced for that.\"</p><p>RBNZ Governor Adrian Orr told reporters yesterday \"we see steady steps of 25<br>basis points back to levels where the OCR is marginally above the neutral rate<br>as the most balanced approach we can take\", though Reuters reports the bank had<br>considered a range of options, including a 50 basis point hike.</p><p>Orr added on housing, \"Homeowners who have just entered the market with<br>extremely high leverage levels have to be incredibly wary and have to understand<br>they have to weather the higher interest rates\", after earlier taxes levied on<br>property investors failed to cool rising house prices, which Reuters reports the<br>RBNZ believes are above their sustainable level, and at increased chance for a<br>correction. He also defended the stimulus but noted the growth in household debt<br>ensuing.</p><p>https://en.m.wikinews.org/wiki/File:Jerome_H._Powell.jpg<br>Jerome Powell [https://en.wikipedia.org/wiki/Jerome_Powell], chair of<br>the Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve].<br>Image: Federal Reserve.</p><p>While countries globally are winding down pandemic-related stimulus measures,<br>according to Reuters, there has been pushback from some countries when it comes<br>to raising interest rates: in the United States<br>[https://en.m.wikinews.org/wiki/United_States], the inflation rate recently rose<br>to 6.2%, the highest in 31 years, which has led some economists to put pressure<br>on Federal Reserve [https://en.wikipedia.org/wiki/Federal_Reserve] chair Jerome<br>Powell [https://en.wikipedia.org/wiki/Jerome_Powell] to accelerate the process<br>of tapering its monthly bond purchases, according to the Associated Press<br>[https://en.m.wikinews.org/wiki/Associated_Press]. The Bank of England<br>[https://en.m.wikinews.org/wiki/Bank_of_England] and European Central Bank<br>[https://en.m.wikinews.org/wiki/European_Central_Bank] (ECB) also both withstood<br>criticism for a forecasted rise in inflationary pressures, according to The<br>Guardian and Reuters.</p><p>ECB President Christine Lagarde<br>[https://en.wikipedia.org/wiki/Christine_Lagarde] told the European Parliament<br>[https://en.m.wikinews.org/wiki/European_Parliament] on November 15 \"an undue<br>tightening of financing conditions is not desirable, and would represent an<br>unwarranted headwind for the recovery\", adding \"[i]f we were to take any<br>tightening measures now, it could cause far more harm than it would do any<br>good\", as reported by Reuters.</p><p>Australia [https://en.m.wikinews.org/wiki/Australia]'s Reserve Bank of Australia<br>[https://en.wikipedia.org/wiki/Reserve_Bank_of_Australia] (RBA) maintained its<br>position that interest rates are not likely to rise until 2024. RBA<br>Governor Philip Lowe [https://en.wikipedia.org/wiki/Philip_Lowe] told an<br>Australian Businesses Economists lunch last week \"the latest data and forecasts<br>do not warrant an increase in the cash rate in 2022\", and for one to be<br>considered by the board \"[t]he economy and inflation would have to turn out very<br>differently from our central scenario\", according to ABC News.</p><p>However, several central banks have increased rates ahead of even New Zealand:<br>Reuters names Norway [https://en.m.wikinews.org/wiki/Norway], the Czech Republic<br>[https://en.m.wikinews.org/wiki/Czech_Republic] and South Korea<br>[https://en.m.wikinews.org/wiki/South_Korea], which is expected to raise rates<br>again in a meeting today.</p><p>Reuters reports the New Zealand dollar<br>[https://en.wikipedia.org/wiki/New_Zealand_dollar] fell 0.6% due to some<br>investors predicting a higher hike, and both 2- and 10-year government bonds<br>slipped by 10 basis points each.</p><p><br></p><p><br></p><p>Have an opinion on this story? Share it!<br>[https://en.m.wikinews.org/wiki/Comments:New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]</p><p><br></p><p><br></p><p><br></p><p>SISTER LINKS</p><p><br></p><p><br></p><p><br></p><p>SOURCES</p><p><br>Last edited 3 hours ago<br>[https://en.m.wikinews.org/wiki/Special:History/New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25]<br>by LivelyRatification<br>[https://en.m.wikinews.org/wiki/User:LivelyRatification]<br>Wikinews<br>&nbsp;* Content is available under CC BY 2.5<br>&nbsp; &nbsp;[https://creativecommons.org/licenses/by/2.5/] unless otherwise noted.</p><p>&nbsp;* Privacy policy [https://foundation.wikimedia.org/wiki/Privacy_policy]<br>&nbsp; &nbsp;&nbsp;<br>&nbsp;* Terms of Use [https://foundation.wikimedia.org/wiki/Terms_of_Use]<br>&nbsp;* Desktop﻿<br>&nbsp;<br>&nbsp;[https://en.wikinews.org/w/index.php?title=New_Zealand_raises_interest_rates_in_second_straight_month_to_0.75%25&amp;mobileaction=toggle_view_desktop]mn mn nnnnnn n&nbsp;</p></div></footer></div></footer></div></footer>",
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