N.Zealand.- New Zealand leaves rates at 5.50%, snapping cycle of twelve consecutive hikes

Madrid, July 12 (Europe Press) –

The Reserve Bank of New Zealand’s Monetary Policy Committee has decided to keep its benchmark interest rate steady at 5.50%, ending a nearly two-year rise in the money price after twelve consecutive increases.

It was the first meeting since August 2021 when the New Zealand central bank did not raise the benchmark rate, which has risen by 525 basis points since October 2021.

“The level of interest rates restrains expected and required spending and inflationary pressure,” the committee pointed out in a statement after its meeting, stressing that the benchmark interest rate should remain at a controlled level in the future to ensure a return to inflation. An annual target range of 1% to 3% supports maximum sustainable employment.

Last week the Reserve Bank of Australia, the body responsible for the maritime nation’s monetary policy, decided to keep interest rates at 4.10%, the highest since April 2012, although it warned it could be raised. Rate of return of inflation to target within a reasonable period of time.

Australia hiked interest rates by 400 basis points from May last year amid rising inflation.