Today, Wednesday, the Central Bank of New Zealand raised interest rates in the country by 50 basis points to 3.5%, as part of the bank’s efforts to tackle inflation.
The Central Bank of New Zealand said in the statement that the decision was made to maintain price stability and contribute to maximum sustainable employment.
The Central Bank of New Zealand explained that core consumer price inflation is too high and labor resources are scarce, CNBC Arabia reported.
The Bank of New Zealand said global consumer price pressures continue to escalate and global demand for goods and services is outpacing supply capacity, putting upward pressure on prices.
New Zealand's food inflation grew 8.3% in August, the largest annual increase since the global financial crisis in July 2009 when food prices jumped 8.4%.
Following the decision to raise interest rates, the New Zealand dollar rose against the US dollar by 0.86% to 0.5762.
