New Zealand central bank leaves cash rate unchanged at 5.5%

NEW Zealand’s central bank held its cash rate steady at 5.5 per cent on Wednesday (May 22), reiterating that previous rate hikes had helped slow the economy and lower inflation but that there was some concern inflation had fallen more slowly than expected.

The decision was in line with expectations from all 30 economists in a Reuters poll that forecast the Reserve Bank of New Zealand would leave the cash rate at a 15-year high for the seventh consecutive meeting.

“The Committee agreed that monetary policy needs to remain restrictive to ensure inflation returns to target within a reasonable timeframe,” the statement said. REUTERS