New Zealand has suspended its consecutive rate hikes since October 2021, keeping the benchmark interest rate unchanged.
The Reserve Bank of New Zealand (RBNZ) has suspended interest rate hikes since October 2021, keeping the benchmark interest rate at 5.5 percent. The expectation of the markets was that there would be no change in interest rates.
The bank had increased the interest rate by a total of 525 basis points in 12 consecutive meetings after October 2021.
The RBNZ said the current level of interest rates “restricts spending and inflation pressures as anticipated and needed”.
However, the central bank said interest rates must “remain at a restrictive level for the foreseeable future” to ensure consumer inflation returns to its target range of 1-3 percent.