New Zealand leaves rates at 5.50% and cuts a cycle of twelve consecutive increases

MADRID, 12 Jul. (EUROPA PRESS) -

The Monetary Policy Committee of the Reserve Bank of New Zealand has decided to keep the reference interest rate stable at 5.50% for its operations, thus ending almost two years of rises after twelve consecutive increases in the price of money .

This is the first meeting since August 2021 in which the New Zealand central bank has not raised the benchmark rate, which has risen by 525 basis points since October 2021.

"The level of interest rates is restricting spending and inflationary pressure as anticipated and required," the Committee indicated in a statement after its meeting, stressing that the reference interest rate should remain at a restrictive level in the foreseeable future to ensure that inflation returns to the annual target range of 1% to 3%, while supporting maximum sustainable employment.

Last week it was the Reserve Bank of Australia, the body in charge of the oceanic country's monetary policy, which decided to keep interest rates at 4.10%, the highest since April 2012, although it warned that it is possible that it is necessary to raise the rate further to return inflation to the target within a reasonable period of time.

Australia had raised interest rates by 400 basis points since May last year in response to sharply rising inflation.