The New Zealand central bank raised its key rate to a seven-year high

The Reserve Bank of New Zealand (RBNZ) has raised interest rates by 50 basis points to a seven-year high of 3.5%. The regulator also announced its readiness to further raise the rate in an attempt to contain stubbornly high inflation.

The central bank's decision coincided with analysts' forecasts. The current increase was the eighth since the beginning of the monetary policy tightening cycle, which started a year ago. RBNZ accelerated the step from 25 to 50 points in April and has now brought the rate level to the cyclical highs of 2014-2015.

It also became known that the monetary policy committee discussed an increase even by 75 bps, but eventually stopped at half a point.

«It remains appropriate to continue tightening monetary policy at the same pace to maintain price stability and ensure maximum employment,» said the representative of the regulator.