The Reserve Bank stuck to the script yesterday with another hawkish monetary statement and a 50 basis point rise in the official cash rate to a seven year high of 3 percent.
The central is forecasting slower growth, but stronger wages, and inflation taking longer to get back to the 2 percent target. Its forecasts suggest the cash rate will top out at 4 percent - possibly through two more 50 basis point rises.
Governor Adrian Orr says it's getting inflation back under control, households have and will cope with the pressures, and so will the RBNZ's own performance.
