New Zealand’s Reserve Bank raised interest rates on Wednesday, as it had decided at three previous meetings, amid fears of inflationary pressures and an uncertain global economic environment.
The agency raised rates on this occasion by 0.5 percentage points, the biggest increase since May 2000, leaving it at 1.5 percent, according to an official statement.
Emphasizing that current inflation is “above the target range of 1 to 3 percent,” it considers the increase appropriate to maintain price stability and support maximum employment stability.
“These general inflationary pressures collide with severe supply shortages and trade disruptions due to the recent recovery in global demand. Economic disruption due to Covid-19, rising energy and food prices as a result of Russia’s invasion of Ukraine,” according to their report.
Last October, the Reserve Bank, which had kept interest rates at their lowest level since March 2020 at 0.25 percent, announced a 0.25 percent hike for the first time since the pandemic, and raised it again twice in November and February. 0.25 percent.
Amid problems such as unemployment (currently 3.2 percent) and a sluggish housing market, the maritime nation fears inflation will hit 7 percent next week. , collects public media Radio New Zealand.
The recorded inflation figure for 2021 was 5.9 per cent, up from 7.6 per cent since June 1990, according to data from Statistics New Zealand, StatisticsNZ.
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