Economics
New Zealand Raises Rates to Tame Inflation With More to Come
- Expects economy will recover quickly from Covid lockdown
- Sees inflation accelerating to more than 4% in near term
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New Zealand’s central bank raised interest rates for the first time in seven years and signaled further increases will likely be needed to tame inflation.
The Reserve Bank’s Monetary Policy Committee, led by Governor Adrian Orr, lifted the official cash rate by a quarter percentage point to 0.5% Wednesday in Wellington, as expected by most economists. Policy makers said they see the economy recovering quickly once a lockdown in largest city Auckland is eased.