Xinhua
24 May 2023, 14:05 GMT+10
WELLINGTON, May 24 (Xinhua) -- The Monetary Policy Committee of the Reserve Bank of New Zealand (RBNZ) voted to raise the Official Cash Rate (OCR) from 5.25 percent to 5.5 percent on Wednesday, in an effort to further control inflation.
The committee agreed the level of interest rates is constraining spending and inflation pressure.
The OCR will need to remain at a restrictive level for the foreseeable future, to ensure that consumer price inflation returns to the 1-3 percent annual target range, while supporting maximum sustainable employment, said an RBNZ statement.
International supply chain constraints have also eased following a period of disruption, and shipping costs have declined. The weaker global growth has led to lower export prices for New Zealand's goods, the statement said.
In New Zealand, inflation is expected to continue to decline from its peak. However, core inflation pressures will remain until capacity constraints ease further. While employment is above its maximum sustainable level, there are now signs of labor shortages easing and vacancies declining, it said.
Consumer spending growth has eased and residential construction activity has declined, while house prices have returned to more sustainable levels, it said, adding that more generally, businesses are reporting slower demand for their goods and services, and weak investment intentions.
"Businesses report that a lack of demand, rather than labor shortages, is now the main constraint on activity," RBNZ said.
While immigration has assisted in easing labor shortages, its net impact on overall spending is uncertain. The recent recovery in tourism spending to around three-quarters of its pre-COVID-19 trend level also supports demand, it said.
Get a daily dose of Knoxville Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Knoxville Times.
More InformationSACRAMENTO, California: Fast food workers will now receive $20 per hour in California, after the governor signed a fast food ...
BEIJING, China: In a deal worth US$10 billion at list prices this week, state-owned carrier China Eastern Airlines announced that ...
BEIJING, China: This week, China Evergrande Group said its founder and chairman, Hui Ka Yan, is being investigated over suspected ...
RIVERSIDE COUNTY, California: In his opening statement this week in the first U.S. trial over allegations that a car autopilot ...
SEATTLE, Washington: As part of Washington's efforts to stop Big Tech from monopolizing the most lucrative parts of the internet, ...
JEDDAH, Saudi Arabia: As part of Riyadh's efforts to further Saudi Arabia's electrification drive, electric vehicle (EV) maker Lucid announced ...
TALLAHASSEE, Florida: The Florida Lottery said this week that the second-largest lottery winner in U.S. history has come forward to ...
LONDON, UK: This week, the Global Financial Centers index showed that New York remains the world's leading financial center, with ...
KAOHSIUNG, Taiwan: In a significant milestone for its defense capabilities, Taiwan has unveiled its first domestically developed submarine. Although it ...
HONIARA, Solomon Islands: Prime Minister Manasseh Sogavare revealed that he opted out of a Pacific Islands leaders' summit at the ...
SACRAMENTO, California: Intending to raise some US$160 million per year to help prevent gun violence, California Governor Gavin Newsom signed ...
MANILA, The Philippines: The Philippines remains steadfast in its resolve not to yield to Chinese efforts to obstruct its fishermen ...