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RBNZ Steps Up Inflation Fight With Rate Hike

  • Flags more aggressive rate increases ahead to tame inflation
  • Sees cash rate rising above 3% this year, nearing 4% in 2023
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WATCH: The Reserve Bank of New Zealand raised its key interest rate by 50 basis points to 2%. Kathleen Hays reports.Source: Bloomberg
Updated on

New Zealand’s central bank raised interest rates by half a percentage point for a second straight meeting and forecast further aggressive hikes to come to tame inflation.

The Reserve Bank’s Monetary Policy Committee lifted the Official Cash Rate to 2% from 1.5% Wednesday in Wellington, as expected by 19 of 22 economists in a Bloomberg survey. It projected the OCR will rise to at least 3.25% this year and peak at close to 4% in 2023, higher than previously forecast.