New Zealand Raises Key Interest Rate to 4.75%

The transcript discusses the Reserve Bank of New Zealand's (RBNZ) decision to downshift its rate hike from 75 to 50 basis points, reflecting on inflation expectations and market reactions. It highlights the government's support for RBNZ's aggressive stance despite economic challenges like Cyclone Gabrielle. The discussion also touches on the potential risks of central banks slowing their tightening cycles too soon, with references to the Federal Reserve's internal debates. The upcoming press conference is anticipated to provide further insights into RBNZ's future actions and their impact on the economy.

What was the recent rate hike decision made by the RBNZ?

• 25 basis points

• 50 basis points

• 100 basis points

• 75 basis points

What is the RBNZ's target range for inflation?

• 2 to 4%

• 1 to 3%

• 3 to 5%

• 0 to 2%

What economic condition is a significant constraint according to the RBNZ?

• Labor shortages

• High export tariffs

• High unemployment

• Low consumer spending

How did the government respond to the RBNZ's rate hike decision amidst Cyclone Gabrielle?

• Urged the RBNZ to slow down

• Supported the RBNZ's decision

• Remained neutral

• Requested a rate cut

What is a potential risk for central banks according to the discussion?

• Ignoring inflation completely

• Slowing the tightening cycle too soon

• Raising rates too quickly

• Not cutting rates fast enough