AUDNZD

Australian dollar / New Zealand dollar

Governor's assistant Karen Silk said that New Zealand's central bank did not expect such strong inflation.

New Zealand will probably enter a small recession, so the interest rate should continue growing to fight inflation. Such an opinion has appeared among the monetary authorities of the central bank.

Analysts forecast that the housing prices in New Zealand will decrease by 18% compared with the maximum value. This is more than their earlier forecasts. Such a decrease was caused by the sharp growth of interest rates which damped an already slowing housing market.

The head of the Reserve Bank of New Zealand (RBNZ) said Thursday that interest rates must be raised in order to curb inflation. In this regard, the country may enter recession.

On Wednesday, New Zealand’s interest rate was increased to a record high level by the country’s central bank.