New Zealand raised rates to 2%, the highest level in six years

Madrid, May 25. (Europe Press) –

The Reserve Bank of New Zealand’s monetary policy committee has decided to raise its benchmark interest rate for the second consecutive meeting by 50 basis points to 2%, the highest level in six years.

This is the fifth consecutive hike in the money price accepted by the group, which has raised the benchmark interest rate by 175 basis points since last October.

“The committee agreed that it is appropriate to continue to tighten monetary conditions at a pace necessary to maintain price stability and support maximum sustainable employment,” the central bank said in a statement, underscoring its commitment to return CPI to a target range between 1. % and 3%.

In this sense, the agency argued that a “higher and earlier increase” in the reference rate reduces the risk of persistent inflation while providing greater flexibility in the future in light of the highly uncertain global economic environment.

In this way, the Committee expressed its determination to continue raising the price of money at a rate that would allow inflation to return to the set target range.