The Reserve Bank of New Zealand (RBNZ) made its sixth consecutive cash rate hike in July, moving the rate up another 50 basis points to 2.5 percent.
The move was widely expected by most analysts as the central bank continues to combat spiralling inflation, which was last reported in February at 6.9 percent.
The monetary policy committee said the domestic economy remained supported by high employment levels and continued government financial support.
Labour shortages also continues to place upward price pressures, intensified by a brain drain, seasonal winter illnesses, and COVID-19.
“In these circumstances, spending and investment demand continues to outstrip supply capacity, with a broad range of indicators highlighting pervasive inflation pressures,” the committee said in a statement….