WELLINGTON, New Zealand (AP) – New Zealand´s central bank raised interest rates for the first time in more than seven years on Wednesday, removing some of the support it put in place when the coronavirus pandemic began.
The Reserve Bank raised the benchmark rate to 0.5% from a record low 0.25%.
The move came despite an ongoing lockdown in Auckland, its largest city, due to a coronavirus outbreak.
The bank said the lockdown had badly affected some Auckland businesses but a broad range of indicators pointed to New Zealand´s economy performing strongly overall. It said inflation was expected to rise to 4% in the short term before easing to 2% in the medium term.