The Central Bank of New Zealand increased the policy rate to 1.50 percent with an increase of 50 bases in response to the rising inflation.
The Reserve Bank of New Zealand made an aggressive interest rate move against high inflation. The bank increased the policy rate by 50 basis points to 1.50%. This is the highest rate hike decision in the last 22 years.
The decision came as a surprise to economists as well. Economists had expected a 25 basis point rate hike from the bank.
Against the rising inflation in the country, the central bank decided to increase the interest rates aggressively. Since October, the policy rate in the country has risen by 125 basis points.
Inflation in New Zealand had reached its highest level in 32 years.
