The Reserve Bank of New Zealand (RBNZ), as expected, raised its interest rate by 0.25% to 0.75%, explaining this decision by increased inflationary pressure.
Meanwhile, the RBNZ pointed to the expediency of further tightening of monetary policy in order to reduce inflation and maintain maximum stability. employment. RBNZ also added that the interest rate may exceed the neutral rate. In general, the RBNZ forecasts suggest that the interest rate may increase to 2.5% by 2023.
The latest data showed that consumer inflation increased by 4.9% per annum in the 3rd quarter, recording the highest pace in more than 10 years, and the unemployment rate fell to a record low and amounted to 3.4%. As for the situation on the housing market, since 2014, the cost of housing has doubled - against this background, the RBNZ decided to raise the rate in December and hinted at further tightening of policy.