New Zealand raises interest rates again

The Reserve Bank of New Zealand (RBNZ) raised its policy rate by another 25 basis points, in line with market expectations, warning that inflation is still too high. The Reserve Bank of New Zealand (RBNZ) on Wednesday raised its benchmark policy rate by 25 basis points to 5.5%. It was the 12th consecutive rate hike since October 2021 and in line with economists’ expectations. “With the bank revising down its near-term forecasts for both headline inflation and the output gap, we think the hiking cycle is now likely to be over,” Abhijit Surya of Capital Economics said in a note after the RBNZ announced the rate.