, Columnist
New Zealand Abandons Covid Zero. Here Come Interest-Rate Hikes
The central bank has pulled the trigger on a long-awaited increase. It's unlikely to be the last as it learns the virtues of nimbleness while living with the virus.
Living with Covid-19.
Photographer: Fiona Goodall/Getty Images
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Living with Covid-19 means embracing interest-rate increases. The more of the latter, the better.
That’s the view from New Zealand, whose central bank proceeded Wednesday with a widely anticipated hike in its benchmark rate to 0.5%, the first nudge higher in seven years. The Reserve Bank made it clear the move is unlikely to be the last. Inflation is above the RBNZ’s target and the local labor market is robust.