Reserve Bank Governor Graeme Wheeler. Photo / Mark Mitchell
Today's interest rate hike is just the start of the cycle and we should expect further rises in April June and July, says Herald economics editor Brian Fallow.
That most likely equates to a full percentage point rise by the time of the election.
How far might it go? The
Reserve Bank is projecting a interest rates 2 percentage points higher by the end of 2015. However the further out you go the less predictable things are.
As three quarters of kiwis have mortgages on floating rates or shorter so the impact will be felt quickly
Why is the Reserve Bank doing this now?
