RBNZ delivers fifth half-point rate increase in a row

RBNZ
Photo: Rachael King

New Zealand’s central bank today (October 5) raised its benchmark interest rate by a half percentage point, taking it to 3.5%, its highest level since 2015.

The Reserve Bank of New Zealand’s decision marks its fifth 50 basis point rate hike in a row.

Consumer price inflation reached 7.3% in the second quarter, the highest in 32 years and well above the RBNZ’s inflation target of 1–3%.

“Core consumer price inflation is too high and labour resources are scarce,” said the RBNZ in a statement.

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