RBNZ tightening policy ‘by more and sooner’
Central bank orders second 50bp hike, the fifth increase since last October
The Reserve Bank of New Zealand increased the benchmark official cash rate by 50 basis points to 2% today (May 25), saying rates would need to rise “by more and sooner”.
The central bank acted in the face of the highest inflation since 1990, according to Stats NZ, the country’s statistical agency. This is the second 50bp increase in a row, following three 25bp increases.
Inflation reached 6.9% in the first quarter of 2022. The RBNZ has an inflation target range of 1% to 3%. The central bank
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