Reserve Bank hikes official cash rate to 2.75%; Methanex to close Taranaki plant citing 'decline' in gas supply; Major changes to Kiwibank a step closer
Reserve Bank hikes official cash rate to 2.75%
The Reserve Bank has increased the official cash rate (OCR) to 2.75%.
It follows a 25-basis-point hike to 2.50% in July - the first increase in more than three years. Many banks and economists forecasted another hike today.
In its statement, the Reserve Bank said all members of the Monetary Policy Committee "agreed that the central projection for the OCR is appropriate", but said further raises were likely.
Methanex to close Taranaki plant, citing 'decline' in gas supply
The country's largest gas user Methanex has announced it will close its Taranaki plant after more than three decades of operation, saying New Zealand's declining natural gas supply has made continuing operations unsustainable.
The Canada-based firm announced it had agreed to sell substantially all of its New Zealand natural gas contractual entitlements commencing in the first quarter of 2027 and continuing through the end of the decade when such entitlements expire.
It also said Methanex expected to "indefinitely idle" its production facilities at Motonui, north of Waitara, with methanol manufacturing to cease at the end of February 2027, after 32 years of operation in the country.
Major changes to KiwiSaver a step closer
KiwiSaver will become more accessible for farm workers wanting to use their savings to buy their first home under legislation introduced this week.
Up until now rural New Zealanders have often been unable to use the first-home withdrawal because of a typical housing arrangement on the farm where they work.
Finance Minister Nicola Willis has said the The KiwiSaver (First Home or Farm) Amendment Bill means farm workers paying into their KiwiSaver and living in accommodation provided by their employer are no longer excluded from making a withdrawal.
Watch: The thing that 'stuck out' as Reserve Bank lifts Official Cash Rate to 2.75%
BNZ Business Breakfast presenter Mei Heron and 1News Business Correspondent Jason Walls discuss the widely-anticipated rate rise and what to expect next.
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