New Zealand Raises Official Cash Rate to 3%

The transcript discusses the current state of inflation and interest rate projections, highlighting that inflation remains high with rates expected to peak at 4.1%. Economists predict further rate hikes, and the Reserve Bank of New Zealand (RBNZ) is expected to continue tightening. The Federal Reserve's stance is also examined, with no immediate pivot expected despite market hopes. Jay Powell's comments suggest continued rate hikes, with the Fed's neutral rate possibly higher than previously thought. The overall message is that both the RBNZ and Fed are focused on controlling inflation before considering any policy shifts.

What is the projected peak rate mentioned in the first section?

• 3.9%

• 4.1%

• 3.5%

• 4.5%

According to the second section, what is a key assumption for stopping rate hikes?

• Inflation control

• Stock market performance

• Economic growth

• Unemployment rate

Who is expected to provide more information about future rate hikes in the second section?

• David

• Kathleen

• Adrian Orr

• Jay Powell

What does the term 'pivot' refer to in the context of the third section?

• A change in inflation rates

• A shift in monetary policy

• An increase in unemployment

• A decrease in stock prices

What is the long-term neutral rate mentioned in the third section?

• 3.0%

• 3.5%

• 2.5%

• 4.0%