RBNZ announces rate hike to 3%

After the meeting, the New Zealand central bank announced a 50 basis point rate hike to 3% as expected, the highest level in nearly seven years, and it was also the fourth consecutive 50 basis point rate hike decision. It was stated after the meeting that it was still appropriate to continue to tighten monetary conditions to keep prices stable and to promote maximum sustainable employment. It also emphasized that the central bank's priority is to prevent runaway inflation, even at the expense of economic growth. In addition, the Reserve Bank of New Zealand also raised its official cash rate (OCR) forecast for early next year to 4%, an increase of 0.3 percentage points from the previous value, indicating that a more hawkish tightening policy may be required in the coming months to curb stubbornly high inflation. Supported by the central bank's hawkish stance, the New Zealand dollar also stabilized.