SYDNEY: 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 says, highlighting the divergent economic and monetary paths of the neighbouring economies.
Responding to questions about the differences in monetary policies, particularly Australia becoming the first major economy to hike rates this year, Reserve Bank of New Zealand (RBNZ) assistant governor Silk in an interview pointed to the nuances between their economic limits, fiscal positions and policy mandates.
