The Reserve Bank of New Zealand (RBNZ) met market expectations by raising its interest rate by 50 basis points to 4.75% at its first policy meeting for the year.
Here are some key words taken from the meeting.
Policymakers agree that tightening should continue.
Although there are early signs of easing price pressures, core inflation remains too high.
The job market is still strong.
Policymakers will look at incoming data and the direct impact of Hurricane Gabrielle hitting the country.
The RBNZ remains expecting interest rates to peak at 5.5%.
The central bank expects annual inflation of 4.2% by March 2024 compared to 3.8% previously.
Policymakers remain committed to implementing monetary policy.
As a result of the above statement, it can be seen that the central bank of New Zealand is still hawkish in setting its latest monetary policy.
This fueled a surge in the New Zealand dollar following the release, before it pared back gains to trade around 0.6225 against the US dollar in the Asian session.
