The Reserve Bank of New Zealand (RBNZ) today raised interest rates by 0.50% to 1.50%, the fourth consecutive rate hike, to reduce the impact of strong inflation.
Economists had expected the RBNZ to raise rates by 0.25%, with some expecting the RBNZ to raise rates by 0.50%.
“A dramatic rate hike will provide more policy flexibility in the future amid a high level of uncertainty in the global economic environment,” the RBNZ said in a statement describing the 0.50% rate hike, the biggest increase in more than 20 years.