The Reserve Bank of New Zealand (RBNZ) made its fifth consecutive 50 basis point hike, raising the cash rate from to 3.5 percent.
The monetary policy committee had considered raising the official cash rate (OCR) by 75 basis points to combat 32-year high inflation of 7.3 percent, before ultimately agreeing that a 50 basis point increase was appropriate.
Some members of the committee argued that a larger increase would reduce the likelihood of a higher OCR peak in the future.
“Other members emphasised the degree of policy tightening delivered to date,” the monetary decision statement read. “Members also noted the lags in monetary policy transmission and a slow pass-through to retail interest rates.”…