New Zealand Central Bank Hikes Benchmark Rate To 2.5 Percent

New Zealand’s central bank lifted its benchmark interest rate by half a percentage point to 2.5 percent as it attempts to curb inflation. <br />It was the third time this year that the Reserve Bank of New Zealand lifted the cash rate by 50 basis points, following hikes in April and May. There was also a quarter percentage point rise in February. <br />The bank has forecast that the rate will peak at 4 percent late next year. <br />It says that it remains appropriate to continue to tighten monetary conditions at a pace to maintain price stability and support maximum sustainable employment.