The Reserve Bank is likely to be unimpressed by the Government’s injection of money into the New Zealand economy, economists say – and it could mean higher interest rates to come. After accounting for reprioritisation and reshuffling of spending, this year’s Budget is set to add more than $5 billion in additional spending in the year to June 2024, compared to predictions in the half-year update. Infometrics chief forecaster Gareth Kiernan said that was likely to weigh on the Reserve Bank’s mind when it made an official cash rate (OCR) decision next week. The rate is currently at 5.25% but is expected to increase. He ... (full story)