Intense inflation pressures drive calls for higher interest rates

The Shadow Board is overwhelmingly calling for a tightening in monetary policy, primarily through higher interest rates. However, this view was not unanimous, with Shadow Board members in the business community who were more cautious about further tightening at the upcoming meeting. This was particularly the case for one member who has seen the negative effects of the prolonged lockdown in Auckland on small and medium enterprises (SMEs) and called for interest rates to remain on hold at the November meeting.