RBNZ raises rates to peak level

RBNZ
Reserve Bank of New Zealand, Wellington
Photo: Rachael King

The Reserve Bank of New Zealand raised its policy rate to 5.5% today (May 24), a level policy-makers estimate will be the peak in the current tightening cycle.

Minutes of the meeting show officials viewed the 25 basis point increase as being unlikely to cause “unnecessary instability” in output, the exchange rate, or wider interest rates. They concluded the rate rise would “increase confidence” that inflation will fall back to the midpoint of the 1–3% target band.

Five of seven policy-makers

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