Kiwibank’s chief economist Jarrod Kerr explains how New Zealand’s economy has faltered post-COVID due to aggressive monetary policy tightening, with the RBNZ taking the cash rate to 5.5% in 2024 leading to recession, and then subsequent steep cuts have weakened the Kiwi dollar against the Australian dollar. In contrast, Australia’s more measured interest rates approach has kept its economy steadier, widening the interest rate and currency gap between the two nations. #ABCBusiness
