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New Zealand raises interest rate 50 basis points, hints at more hikes

Central bank tightens again to restrain inflation, NZ dollar hits a 3-week high

Shoppers in a retail district in Auckland: The Reserve Bank of New Zealand hikes rate for the fifth time in a row to get on top of inflation. It's benchmark interest rate is now 2.0%.   © Reuters

WELLINGTON (Reuters) -- New Zealand's central bank raised interest rates by 50 basis points to 2.0% on Wednesday, its fifth rate hike in a row as it seeks to get on top of inflation and signaled the cash rate would peak at a higher level than previously forecast.

All but one of 21 economists in the Reuters poll forecast the Reserve Bank of New Zealand (RBNZ) would hike the official cash rate (OCR) by 50 basis points to 2.0%. One economist expected a 25 basis point hike.

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