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New Zealand central bank ups rates to 14-yr high, signals hikes done

RBNZ raises interest rates by 25 basis points to 5.5%

People load shopping into a car in New Zealand. The nation's central bank has remained singularly focused on curbing inflation, lifting rates by 525 basis points since October 2021.   © Reuters

WELLINGTON (Reuters) -- New Zealand's central bank on Wednesday signaled it was done tightening after raising rates by 25 basis points to the highest in more than 14 years at 5.5%, ending its most aggressive hiking cycle since 1999.

The Reserve Bank of New Zealand's (RBNZ) indication the official cash rate (OCR) would now be on hold defied market expectations that it might forecast further hikes and sent the New Zealand dollar down 1.25%.

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