New Zealand Central Bank Hikes Rate By 50 Bps

(RTTNews) - New Zealand central bank raised its key interest rate again by 50 basis points on Wednesday.

The Monetary Policy Committee of the Reserve Bank of New Zealand decided to lift the Official Cash Rate to 3.50 percent from 3.00 percent. A similar higher rate was last seen in 2015.

The committee observed that inflation is currently too high and employment is beyond its maximum sustainable level.

The summary of the meeting showed that the Committee considered whether to increase the interest rate by 50 or 75 basis points. Some members highlighted that a larger increase in the OCR now would reduce the likelihood of a higher peak in the OCR being required.