Wellington, Feb 22 (IANS): New Zealand's Reserve Bank increased the official cash rate (OCR) by 50 basis points to 4.75 per cent on Wednesday, the 10th consecutive hike since mid-2021.
As high inflation still plagues the economy, the central bank said more rate rises are needed to curb inflation.
The OCR, which affects the cost of borrowing, was just 0.25 per cent in mid-2021, reports Xinhua news agency.
Cyclone Gabrielle and other recent severe weather events have had a devastating effect on the lives of many New Zealanders, and it is too early to accurately assess the monetary policy implications of these weather events, said a Reserve Bank statement.
Over the coming weeks, prices for some goods are likely to spike, economic activities will be weaker than previously expected, and export revenues will be negatively impacted, according to the Monetary Committee's current assessment.