RBNZ keeps rate on hold at 5.5% but turns more hawkish

The hawk emerges. (Image: Getty)

Wed, 22 May 2024

The Reserve Bank of New Zealand kept the official cash rate on hold at 5.5% but rejigged its forecasts, taking a more hawkish stance."The committee agreed that monetary policy needs to remain restrictive to ensure inflation returns to target within a reasonable timeframe," it said.Inflation was 4% in the March quarter, still above the 1% to 3% band the central bank targets.The decision was widely expected.However, the bank now expects inflation to be back inside the target band in December this year, when it is forecast to be 2.9%.Its...

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