Auckland Budget Holes Climbs to $300M Following Reserve Bank Interest Hike
November 24, 2022
PHOTO: STUFF
Auckland Council’s forecast budget hole has grown to $295 million following the Reserve Bank’s latest view on inflation and interest rates.
The council’s chief financial officer Peter Gudsell said the Reserve Bank’s Wednesday update has probably added $25 million to the budget gap starting in July 2023.
At a Thursday morning meeting, Gudsell told councillors the expectation of higher inflation for longer and higher borrowing costs “reinforced the importance of a credible and sustainable budget” – the first version of which will be proposed on December 15.