RBNZ lifts cash rate by 25bps to 0.75pc

The Reserve Bank of New Zealand said it has raised the official cash rate a quarter of a percentage point to 0.75 per cent to maintain price stability and support maximum sustainable employment.

It expects CPI inflation to exceed 5 per cent in the near term before returning towards the 2 per cent midpoint over the next two years. The near-term rise in inflation is accentuated by higher oil prices, rising transport costs and the impact of supply shortfalls.

The central bank flagged further tightening given the medium-term outlook for inflation and employment.

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.