Xinhua
24 May 2023, 09:35 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 Tennis 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 Tennis Times.
More InformationBy Sahil Kohli Mumbai (Maharashtra) [India], April 1 (ANI): Following her international hockey retirement, Indian forward Vandana...
Lucknow (Uttar Pradesh) [India], April 1 (ANI): Punjab Kings skipper Shreyas Iyer won the toss and opted to bowl first against Lucknow...
Kolkata (West Bengal) [India], April 1 (ANI): Former Indian cricketer Wasim Jaffer, who is also the coach for Punjab in domestic cricket,...
(Photo credit: Joe Camporeale-Imagn Images) Left-hander Justin Steele and righty Luis Severino will attempt to reverse Sutter Health...
(Photo credit: Joe Camporeale-Imagn Images) The Los Angeles Dodgers keep winning, even as they struggle to keep their top personnel...
(Photo credit: Junfu Han / USA TODAY NETWORK via Imagn Images) The careers of Casey Mize and Logan Gilbert have diverged since the...
DUBLIN, Ireland: A new survey from the Central Statistics Office reveals that most 25-year-olds in Ireland are still living at home,...
Banaskantha (Gujarat) [India], April 1 (ANI): The death toll in the firecracker godown explosion in Gujarat's Banaskantha district...
Katra (Jammu and Kashmir) [India], April 1 (ANI): Jammu and Kashmir Lieutenant Governor (LG) Manoj Sinha on Tuesday paid obeisance...
New Delhi [India], April 1 (ANI): Congress MP Jebi Mather on Tuesday accused the BJP-led Centre of 'dividing people' and stated that...
New Delhi [India], April 1 (ANI): Amid the ongoing row on Waqf (Amendment) Bill, Samajwadi Party chief Akhilesh Yadav on Tuesday accused...
Firefighters install a heating facility for quake-affected residents inside a makeshift house in Yejing Village of Dingri County in...