The Reserve Bank of New Zealand raised interest rates by 25 basis points and said it had done enough to curb inflation.
The bank’s forecasts show that the official cash rate (OCR) will not rise any further and will start to fall from the third quarter of 2024.
The RBNZ said the committee believed that with interest rates remaining at restrictive levels for some time, consumer price inflation would return to its target range of 1-3% per annum, while supporting maximum sustainable employment.
At the same time they expect inflation to continue to decline from peak levels, and measures of inflation expectations will follow suit.