NZ Economy Shows Resilience as Reserve Bank Raises Official Cash Rate to 2.75%

The Reserve Bank’s assessment that the economic recovery is resuming and expected to broaden, has been welcomed by Finance Minister Nicola Willis.

Announcing a 0.25 basis point lift in the Official Cash Rate today to 2.75 per cent, the Reserve Bank said it expected the recovery to strengthen and broaden, the export sector to remain resilient and household spending to increase.

The bank also expects purchasing power to increase as inflation returns to the mid-point of its target range.

The bank’s assessment demonstrates the economy has proved to be more resilient in the face of the Middle East conflict than many commentators thought, Nicola Willis says.

Unlike some previous upturns, this recovery is being driven by the export sector rather than rising house prices. That augurs well for the future.

Many people are doing it tough and we still have a way to go but New Zealanders can take heart from the resilience shown by the economy.