Adrian Orr believes he's struck the right approach with the latest unprecedented hike to interest rates.

The Reserve Bank Governor has lifted the Official Cash Rate by 75 basis points, to a 14 year high of 4.25 percent.

Orr is warning the country could be in recession by the middle of next year, and the OCR may have to peak at 5.5 percent to get inflation under control.

While some have accused him of overcooking things, and others will accuse him of not being aggressive enough, Orr told Mike Hosking the decision has been carefully thought out.

He says the central bank considered a 50, 75 and 100 basis point rise, favouring a higher rise over a lower one.

LISTEN ABOVE

Adrian Orr believes he's struck the right approach with the latest unprecedented hike to interest rates.
The Reserve Bank Governor has lifted the Official Cash Rate by 75 basis points, to a 14 year high of 4.25 percent.
Orr is warning the country could be in recession by the middle of next year, and the OCR may have to peak at 5.5 percent to get inflation under control.
While some have accused him of overcooking things, and others will accuse him of not being aggressive enough, Orr told Mike Hosking the decision has been carefully thought out.
He says the central bank considered a 50, 75 and 100 basis point rise, favouring a higher rise over a lower one.
LISTEN ABOVE

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.