RBNZ Hike 50bps to 2.5%

By Sophia Rodrigues

Published On 13 Jul 2022 , 12:57 PM

The Reserve Bank of New Zealand raised the official cash rate by 50bps for the third meeting in a row, taking the rate to 2.5%.

The RBNZ said it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and support maximum sustainable employment, and that it is "resolute" in its commitment to ensure consumer price inflation returns to within the 1% to 3% target band.

"Once aggregate supply and demand are more in balance, the OCR can then return to a lower, more neutral, level," the RBNZ said.

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