Australia Is In ‘Difficult Position’ on Rates, RBNZ’s Silk Says

Australia is in a “difficult position” as it raised interest rates at a slower pace than peers following the post-pandemic surge in inflation, New Zealand central banker Karen Silk said, highlighting the divergent economic and monetary paths of the neighboring economies.

Responding to questions about the differences in monetary policies — particularly Australia becoming the first major economy to hike rates this year — RBNZ Assistant Governor Silk in an interview pointed to the nuances between their economic limits, fiscal positions and policy mandates.