New Zealand increased its policy rate by 50 basis points to 2 percent to combat high inflation.

While the Central Bank of New Zealand decided to increase interest rates in the second successive meeting, it also gave the signal that interest rate hikes would continue. The bank increased the policy rate by 50 basis points from 1.50 percent to 2 percent. Since October, the latest decision has increased the interest rate by 175 basis points.

It is predicted that the interest rate in the country will rise to at least 3.25 percent this year and will peak at 4 percent in 2023. In the statement made by the bank, it was emphasized that it remains appropriate to continue monetary tightening to support price stability and maximum sustainable employment.

In the statement, it was stated that the bank is determined in its commitment until inflation returns to the target of 1-3 percent.