Economic Buzz: New Zealand Central Bank Raises Key Rate By 50Bps

17 Aug 2022 , 01:45 PM

New Zealands central bank raised its benchmark rate by another 50 basis points and hinted at more to come as policymakers focused on inflation pressures and capacity constraints. The Monetary Policy Committee of the Reserve Bank of New Zealand on Wednesday decided to lift the Official Cash Rate to 3.00 percent from 2.50 percent. The committee assessed that they will need to raise the benchmark rate by more than expected in May to bring inflation to the 2 percent target midpoint and employment to its maximum sustainable level. Currently inflation is higher than target, and employment is well above its maximum sustainable level. Powered by Commodity Insights