RBNZ keeps rates on hold, says policy to remain restrictive
Investing.com-- The Reserve Bank of New Zealand left interest rates unchanged as widely expected on Wednesday, and reiterated that monetary policy will remain restrictive to further reduce pressure from inflation.at 5.5%, in line with market expectations. Wednesday marked the sixth consecutive meeting where the RBNZ has kept rates unchanged after a 25 basis point hike in May 2023.
The RBNZ largely maintained its stance from its February meeting, in that it no longer flagged the possibility of more interest rate hikes. The bank reiterated that it did see some declines in inflation amid high interest rates. The central bank had forecast that inflation will only come within its target by the third quarter of 2023.
But its efforts were stymied by persistently high services inflation in New Zealand. Rebuilding efforts in the wake of two devastating cyclones in 2023 also factored into higher inflation.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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