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MNI BRIEF: RBNZ To Lift Rates Until Inflation Inside Target

MNI (Sydney)
SYDNEY (MNI)

The Reserve Bank of New Zealand raised its Official Cash Rate by 50 basis points to 2.5% on Wednesday and said it would continue to hike until inflation was back inside its 1% to 3% target range.

NZ's CPI inflation was 6.9% for the first quarter of 2022, although the RBNZ today said its core inflation measures "are around 4%". The last Monetary Policy Statement, in May, forecast an OCR of 3.4% by the end of this year, (See: MNI STATE OF PLAY: RBNZ To Hike As Growth Stalls).

The hike on Wednesday was the sixth in as many meetings since last October, when the RBNZ began tightening from the record low OCR of 0.25%, (See: MNI INTERVIEW: RBNZ To Opt For "Short Term Pain" On Inflation).

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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