OECD advises RBNZ to hold off on cutting interest rates in 2024 due to persistent inflation.
The OECD advises the Reserve Bank of New Zealand (RBNZ) to hold off on cutting interest rates in 2024 due to persistent inflation, limiting the scope for lowering the Official Cash Rate. The organization suggests keeping the rate at 5.5% until there's clear evidence of inflation falling within the RBNZ's target range. The OECD projects modest economic growth of 0.8% in 2024, rising to 1.9% in 2025. To reduce the fiscal deficit, the OECD recommends gradual tax policy adjustments and considers introducing a capital gains tax.
May 06, 2024
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