The Reserve Bank of New Zealand – the central bank of New Zealand – raised key benchmark rates by 50 basis points to 1.50%, more than the 25 basis point squeeze expected by the consensus, and at the stronger pace more than 20 years. Rates were raised for the fourth consecutive time.
“The Commission agreed that it is appropriate to continue tightening monetary conditions at the pace that best ensures price stability and supports maximum sustainable employment,” the statement read.
Following the announcement, the New Zealand dollar strengthened against the US dollar, before losing ground around $ 0.6844 from its previous intraday high of $ 0.6901.
The RBNZ confirmed the battle against inflation, writing in the release that it will remain focused on ensuring that high consumer price inflation does not root in expectations of higher inflation over the long term.