New Zealand's central bank lifted its key interest rate by half a percentage point, the biggest increase in over two decades, to head off rising inflation expectations and minimize any unnecessary volatility in the future.
The Monetary Policy Committee of the Reserve Bank of New Zealand raised the Official Cash Rate by 50 basis points to 1.50 percent at its meeting on Wednesday. The bank hiked the rate for a fourth policy session in a row.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.