With the latest NZ inflation rate of 7.2% at a level much higher than expected, the RBNZ is expected to hike interest rates by more than previously anticipated. This is good news for banks and for financial stability. True or False? Can you explain

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With the latest NZ inflation rate of 7.2% at a level much higher than expected, the RBNZ is expected to hike interest rates by more than previously anticipated. This is good news for banks and for financial stability. True or False? Can you explain a little bit? Thank you!

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In this year during third quarter annual inflation ran at 7.2%; and primary drivers of inflation included the housing, household utilities, and transport. The central bank of New Zealand’s was one of the first in the world on targeting the price stability and inflation with an increase in interest rate

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