RBNZ holds policy rate but revises up projection

Central bank expects rate to stay higher for longer and raises estimate of neutral rate

Photo: Rachael King

The Reserve Bank of New Zealand kept its policy rate steady for the second straight meeting, but it expects the official rate to remain high for “slightly longer” than its previous forecasts.

The RBNZ’s seven-member monetary policy committee held the official cash rate (OCR) at 5.5%, the highest level since 2008.

“The committee agreed that the official cash rate needs to stay at restrictive levels for the foreseeable future to ensure annual consumer price inflation returns to the 1–3% target

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