RBNZ raises Official Cash Rate to 5.5%

NEW ZEALAND - The Reserve Bank of New Zealand said it has decided to increase the official cash rate by 25 basis points to 5.5% as a precaution against inflationary pressures building up and as the risks to economic growth ease. The central bank noted that further rate increases are likely in the future.

Acting Governor Rod Carr said in a statement: "Demand conditions no longer warrant the degree of interest rate stimulus that seemed necessary late last year. The economy's ability to meet incr

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