Third Interest Rate Hike From New Zealand
Burc Oran
February 23, 2022
New Zealand

The Reserve Bank of New Zealand increased its policy rate by 25 basis points. Thus, the decision to increase interest rates was taken at three consecutive meetings.

While the Reserve Bank of New Zealand is increasing interest rates for the third time to combat inflation, it gave the message that it will continue its tightening cycle. The bank increased its policy rate by 25 basis points to 1 percent.

In their projections for the Bank’s policy rate, experts predicted that the interest rate will rise to 2.5 percent for the next 12 months, and that it will peak at 3.25 percent at the end of 2023. In November, the peak expectation for the policy rate was determined as 2.5 percent.

The bank said in a statement that there was a consensus for further tightening in November.

While inflation in the country reached its highest level in 31 years with 5.9 percent, expectations point to a continuation of the rise in inflation.

Stay informed with market news by subscribing to our reading list.

FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.
The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.

WARNING

Due to your regulatory authority, unfortunately, we cannot offer you our margin trading services.