New Zealand raises interest rates amid fears of inflation Economy | USA Edition

The Reserve Bank of New Zealand raised interest rates on Wednesday, as decided at the previous three meetings, amid fears of inflationary pressures and an uncertain global economic environment.

The agency raised rates this time by 0.5 percentage points, the largest increase since May 2000, leaving it at 1.5 percent, the official report said.

The regulator believes the increase is appropriate to maintain price stability and support maximum job stability, emphasizing that current inflation is “above the target range of 1 to 3 percent”.

“This general inflationary pressure is compounded by severe supply shortages and trade disruptions due to the recent recovery in global demand. The economic downturn caused by Govt-19 has led to higher energy and food prices as a result of the Russian invasion of Ukraine,” they said.

Last October, the Reserve Bank of India, which had kept interest rates at a record low of 0.25 per cent since March 2020, announced an increase of 0.25 per cent for the first time since the outbreak, raising it again twice in November and February. 0.25 percent.

Amid problems such as unemployment (currently 3.2 percent) and a slump in the housing market, the maritime nation fears inflation will reach 7 percent next week. , Radio New Zealand collects public media.

The inflation rate recorded in 2021 was 5.9 per cent, up from 7.6 per cent in June 1990, according to data from the New Zealand Bureau of Statistics NZ.