Live Updates > Live Update Details
2026-05-29 07:29:56
[RBNZ Assistant Governor: Larger Rate Hike to Be Considered if Second Round of Inflation Effect Emerges] 1. RBNZ Assistant Governor Christian Silk stated that the central bank has not yet observed clear signs of medium-term inflationary pressures, but is prepared to take aggressive measures should they emerge. 2. "There is no early evidence that this will necessarily develop into a very strong second round of effects," Silk noted in an interview in Wellington on Friday. "Therefore, the core question is: when do you start raising rates? And to what extent can weak economic growth suppress medium-term inflationary pressures?" 3. Silk stated that all policy options are under consideration, including a more aggressive 50-basis-point rate hike. "If the data changes and indicates that a second round of effects is indeed emerging, and things will be much worse, then you always retain that option." 4. She added that conversely, if the data supports maintaining the status quo, it is also feasible to remain on hold.
