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 San Jose Sun 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 San Jose Sun.
More InformationFreddie Freeman had one of the best seasons of his accomplished career with the Los Angeles Dodgers in 2022 and ...
Chicago White Sox right-hander Lucas Giolito didn't hesitate to admit what torpedoed his horrendous start Thursday in Detroit. "Nothing super ...
Bryce Elder has been a pleasant surprise for the Atlanta Braves, who continue their three-game series against the host Oakland ...
Ryan Noda highlighted a four-run fifth inning with a three-run homer as the Oakland Athletics ended an 11-game losing streak, ...
Aaron Judge hit two home runs, giving him an American League-leading 17 this season, as the New York Yankees defeated ...
Freddie Freeman extended his hitting streak to 18 games, J.D. Martinez hit a three-run home run and the Los Angeles ...
BEIJING, China: China will put into commercial operation its first large passenger airliner, in a bid to challenge western plane ...
FRANKFURT, Germany - With U.S. and UK. markets closed for public holidays, it was left to European and broader global ...
NEW YORK CITY, New York: The Verge has reported that Verizon Communications met with more than 6,000 customer service employees ...
WASHINGTON D.C.: In response to a safety warning issued by the US National Highway Traffic Safety Administration, Vietnamese electric vehicle ...
NEW YORK CITY, New York: Electric truck manufacturer Nikola Corp said that Nasdaq has delivered a delisting notice for not ...
MINNEAPOLIS, Minnesota: Reuters reported that after facing a backlash from customers, Target is pulling some products from its Pride Collection ...