New Zealand rate hike for first time in seven years

The Central Bank has signaled that further tightening is coming to combat inflation pressures and slow down the fast-growing housing market.

POLICY INTEREST INCREASED 25 BASE POINTS

The Central Bank increased the policy rate by 25 basis points to 0.5 percent. Economists surveyed by Reuters all predicted that interest rates would rise to this level.

After the decision, the New Zealand dollar appreciated for a short time, but later returned to the level of $ 0.6930.

Economists predict that the policy rate in New Zealand will rise to 1.5 percent by the end of next year and to 1.75 percent by the end of 2023.