Central Banks

New Zealand Holds Rates, Sees Ongoing Need for Tight Policy

  • RBNZ says cash rate at 5.5% should return inflation to target
  • Notes domestic economy ‘continues to evolve as anticipated’
WATCH: The central bank of New Zealand has kept its key interest rate steady at 5.50% as expected. Yvonne Man and David Ingles report.Source: Bloomberg
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New Zealand’s central bank kept interest rates unchanged for a sixth straight meeting and said they need to remain high for some time to ensure inflation is tamed.

The Reserve Bank’s Monetary Policy Committee held the Official Cash Rate at 5.5% Wednesday in Wellington, as anticipated by all 25 economists in a Bloomberg survey.