Reserve Bank of New Zealand raises cash rate by 50 basis points

NEW Zealand’s central bank raised interest rates by 50 basis points to 2.50 per cent on Wednesday, its sixth rate hike in a row in an effort to get on top of inflation.

Twenty of the 22 economists in the Reuters poll forecast the Reserve Bank of New Zealand (RBNZ) would hike the official cash rate (OCR) by 50 basis points to 2.50 per cent. Two economists expected a 25 basis point hike. 

“The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and support maximum sustainable employment,” the RBNZ said in a statement. REUTERS