New Zealand Cash Rate Raised to 3 Percent as Inflation Continues to Climb

New Zealand Cash Rate Raised to 3 Percent as Inflation Continues to Climb
People walk on a street in Wellington, New Zealand, on May 14, 2020. Marty Melville/AFP via Getty Images
Rebecca Zhu
Updated:

The Reserve Bank of New Zealand (RBNZ) has raised the cash rate by 50 basis points to three percent and warned of risks associated with continued high levels of government spending.

After inflation hit a 32-year high of 7.3 percent, the central bank made its fourth consecutive 50 points hike of the year, bringing the official cash rate to a seven-year high.