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- Reserve Bank of New Zealand raised its interest rate to 3.25%
Reserve Bank of New Zealand raised its interest rate to 3.25%
The Reserve
Bank of New Zealand (RBNZ) raised its interest rate to 3.25% from 3.00%. New
Zealand’s central bank commented that the RBNZ could hike interest rate by 50
basis points this year.
The main
comment of the Reserve Bank of New Zealand Governor Graeme Wheeler was after
the interest hike that “it is important that inflation expectations remain
contained and that interest rates return to a more neutral level”
The Reserve
Bank of New Zealand Governor Graeme Wheeler said that inflationary pressures
were expected to increase and next interest rise will depend on future economic
and financial data and how these affect inflationary pressures. He added that
future inflation should be kept near 2%.
The RBNZ
said in the statement New Zealand's economic expansion had “considerable
momentum”, with estimated GDP growth by around 4% in the year to June.
That was
the third interest hike since March.
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