New Zealand’s central bank raises rates by 75bps

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FILE PHOTO: Pedestrians walk near the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand

By Lucy Craymer

WELLINGTON (Reuters) – New Zealand’s central bank raised interest rates by 75 basis points to a near 14-year high of 4.25% on Wednesday and flagged more hikes to come as it struggles to contain stubbornly high inflation.

Fifteen of 23 economists in a Reuters poll forecast the Reserve Bank of New Zealand (RBNZ) would move by 75 basis points, the ninth straight hike since it began tightening in October 2021.

It now expects the cash rate to peak at 5.5% in September 2023, according to the monetary policy statement.

(Reporting by Lucy Craymer; Editing by Sam Holmes)

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