The New Zealand Reserve Bank has hiked interest rates by half a percentage point to two percent as it battles to contain inflation, which is currently at a 30-year high of 6.9 percent.
It is the second consecutive 50 basis points (bp) increase to two percent, with the Reserve Bank of New Zealand (RBNZ) indicating more hikes would come to return inflation back to its target range of one to three percent.
“The committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and support maximum sustainable employment,” the monetary policy committee said.
It said New Zealand’s underlying economy remains strong, supported by a strong labour market, sound household balance sheets, and continued economic support….