New Zealand's Reserve Bank hikes official cash rate to 2.5 percent
New Zealand's Reserve Bank raised the official cash rate by 25 basis points to 2.5 percent. Economists had described the decision as a close call, and had been awaiting the outcome with keen interest.
New Zealand's Reserve Bank raised the official cash rate by 25 basis points to 2.5 percent. Economists had described the decision beforehand as a close call and had been awaiting the outcome with keen interest.
The rate rise has a direct effect on borrowing costs, particularly home loans. Holders of floating-rate mortgages may face higher monthly repayments as a result.
The bank will continue to assess the inflation outlook and economic data. Markets will focus on whether the rate is held at the next meeting and on the central bank's guidance.
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