Ex-RBNZ Governor Grimes calls for a 50bps rate hike – MNI

Arthur Grimes, a former Reserve Bank of New Zealand (RBNZ) Governor and Chief Economist called for a 50-basis points hike when the central bank meets this Wednesday, in an interview with MNI.

Key takeaways

“A 50 basis was his assessment, but a rise of 25 basis points is more likely.”

“Called on the RBNZ to raise interest rates "aggressively" in response to an overheating economy, where house price increases - up 30% in the year to July - had become "ludicrous."

"RBNZ policy has been far too populist, and they have got it completely wrong."

“The RBNZ should reduce the size of its balance sheet, saying it had increased from NZD30 billion to over NZD80 billion in the last 18 months.”

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