Economist: Official Cash Rate is going up too slowly

Author
Newstalk ZB,
Publish Date
Wed, 24 Nov 2021, 6:09PM
(Photo / File)
(Photo / File)

Economist: Official Cash Rate is going up too slowly

Author
Newstalk ZB,
Publish Date
Wed, 24 Nov 2021, 6:09PM

A suggestion the Official Cash Rate is going up too slowly.  

The Reserve Bank has lifted it to 0.75 percent, up from 0.5. 

Independent economist Tony Alexander told Heather du Plessis-Allan what's happening now is similar to events between 2004 and 2008. 

“When they increased interest rates, but they did it to slowly and in the end they had to cause a recession in our economy in 2008 with mortgage rates at around 11 percent.” 

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