The Reserve Bank of New Zealand on Wednesday raised interest rates by 25 basis points to 0.75 per cent as it moved to take the heat out of the economy and rein in surging house prices.
In announcing its second rate rise in two months, the central bank also gave hawkish guidance on future moves, saying interest rates would probably need to rise above their neutral level.
The RBNZ’s aggressive campaign of rate increases will be closely watched by central banks around the world as they consider how to react to a global rise in prices.
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