NZ central bank signals aggressive tightening pace after 50-bps hike

WELLINGTON -New Zealand’s central bank on Wednesday delivered its seventh straight interest rate hike and signaled a more hawkish tightening path over coming months to rein in stubbornly high inflation.

The aggressive tone of the Reserve Bank of New Zealand’s (RBNZ) statement warning of future hikes being brought forward caught some traders by surprise, lifting the local dollar and sending swap rates higher.

The RBNZ raised the official cash rate (OCR) by 50 basis points to 3 percent as expected, a level not seen since September 2015, and crucially, it now sees rates at 4 percent by early next year, compared to a previous projection of 3.7 percent.

Wednesday fourth straight …

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