New Zealand pauses rate hikes

New Zealand has held its benchmark interest rate steady, after pausing several rate hikes since October 2021. The Reserve Bank of New Zealand (RBNZ) has held its benchmark interest rate steady at 5.5%, after pausing several rate hikes since October 2021. Markets had also expected the rate to remain unchanged. The bank had raised interest rates by a total of 525 basis points in 12 consecutive meetings since October 2021. The RBNZ said the current level of interest rates “contains spending and inflation pressures as anticipated and necessary.” However, the central bank said interest rates must “remain at a restrictive level for the foreseeable future” in order to ensure consumer inflation returns to its target range of 1-3%.