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 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 InformationThe New York Yankees provided Double-A Somerset with a load of talent on Tuesday as a trio of players reported ...
The Tennessee Titans announced a pair of transactions Tuesday -- the official signing of the team's latest first-round draft pick ...
The Detroit Tigers placed left-hander Eduardo Rodriguez on the 15-day injured list Tuesday with an index finger injury, while outfielder ...
The Milwaukee Brewers placed outfielder Jesse Winker on the injured list Tuesday with a cervical strain and recalled infielder Abraham ...
The Baltimore Orioles placed center fielder Cedric Mullins (groin) on the 10-day injured list Tuesday and replaced him on the ...
One day after he was claimed off waivers, catcher Gary Sanchez was activated onto the San Diego Padres' roster in ...
In New Brunswick, the issue of inclusion in schools is most recently in the spotlight due to calls to review ...
atlanta - Former first lady Rosalynn Carter has dementia and remains at home, her family has announced.Carter, 95, remains at ...
Quarterback Deshaun Watson made it crystal clear Tuesday that he'd love for the Cleveland Browns to sign his former teammate ...
New Delhi [India], May 30 (ANI): The Delhi High Court on Tuesday refused to grant any stay to the residents ...
WASHINGTON - The U.S. on Tuesday imposed sanctions on 17 people and entities based in China and Mexico who it ...
By Jyotsana SinghNew Delhi [India], May 30 (ANI): As cold-blooded murders of similar fashion have unfolded in India's metropolitan cities, ...