The central bank reiterated that its previous rate hikes had helped constrain spending and inflation pressures as anticipated. — Reuters
WELLINGTON: New Zealand’s central bank held the cash rate steady at 5.5% yesterday, as it reiterated that its previous rate hikes had helped constrain spending and inflation pressures as anticipated.
The decision was in line with expectations from 29 economists in a Reuters poll, all forecasting that the Reserve Bank of New Zealand (RBNZ) would leave the cash rate at a 14-year high for the second consecutive meeting.
“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% to 3% target range,” the statement said.
It said that, conditional on its central economic outlook, the cash rate would need to remain at around its current level for slightly longer than was assumed in its May statement in order for the monetary policy committee to meet its inflation and employment objectives. — Reuters
