12:46 - 24.05.2023

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May 24, Fineko/abc.az. The Reserve Bank of New Zealand (RBNZ) on Wednesday raised its key interest rate by 25 basis points to 5.5%, the highest level in more than 14 years, ABC.AZ reports with reference to the bank.

Inflation remains too high. At that, the bank still predicts recession this year.

RBNZ’s decision was in line with the forecast of 21 economists out of 25 surveyed by Reuters. The bank's rate hike on Wednesday was the 12th increase in a row since October 2021.

"The official monetary rate should remain at a restrictive level for the foreseeable future to ensure that consumer price inflation returns to the annual target range of 1-3%," the RBNZ said in a statement.