New Zealand Hikes Rate By Half-Point, Signals More Tightening 

  • RBNZ raises cash rate above neutral level to curb demand
  • Says it’s ‘resolute in its commitment’ to bring inflation down
WATCH: The Reserve Bank of New Zealand raised its key interest rate by 50 basis points to 2.5%. Kathleen Hays and Yvonne Man report.Source: Bloomberg
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New Zealand’s central bank raised interest rates by half a percentage point for a third straight meeting and said it will continue to tighten policy “at pace” until it’s sure inflation is contained.

The Reserve Bank’s Monetary Policy Committee increased the Official Cash Rate to 2.5% from 2% Wednesday in Wellington, as expected by all 20 economists in a Bloomberg survey.