Home buyers could get some pre-Easter relief, with the Reserve Bank saying it will consider a pause in interest rate increases at its April meeting.
was hit by client outflows and a stock rout, show the concern about the impact of such a rapid tightening of monetary policy.
The bank is forecasting inflation, which hit a 32-year high of 7.8 per cent in December, to gradually fall back to 2.5 per cent by the middle of 2025.The minutes show the bank is concerned about the level of productivity growth across the economy, noting productivity had not increased during the COVID-19 pandemic period.But the minutes also show growing concern about how the economy will perform under the weight of higher interest rates.
As part of their deliberations, members discussed the lags in the effect of monetary policy and the cumulative impact of the significant increase in interest rates since May last year.Edwina PicklesOne key source of uncertainty for the bank is household consumption. While inflation was pushing up the prices for retail goods, the actual quantity of goods sold was barely growing.
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