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New Zealand central bank makes third straight hike, plans bond sales

New Zealand's central bank raised interest rates by 25 bps, a third consecutive hike that brings borrowing costs to pre-Covid levels, saying it would sell bonds as it looks to counter rising inflation

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Loan. Photo: Shutterstock

Reuters Wellington

2 min read Last Updated : Feb 23 2022 | 9:04 AM IST

New Zealand's central bank raised interest rates by 25 basis points on Wednesday, a third consecutive hike that brings borrowing costs to pre-pandemic levels, and said it would sell bonds as it looks to counter rising inflation.

All but one of the 20 economists in a Reuters poll had expected RBNZ to hike rates by 25 basis points to 1.0%, while one was poised for a 50 basis point hike. But RBNZ flagged a more aggressive tightening path, which sent the New Zealand dollar soaring over 0.5% to $0.6765 after the announcement.

"The Committee agreed it remains appropriate to continue

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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