Surprise Half-Point Rate Hike by RBNZ Causes Jump in Kiwi

New Zealand’s central bank unexpectedly raised interest rates by 50 basis points, maintaining its pace of tightening to tame inflation even as the economy heads toward recession. The currency jumped.

The Reserve Bank’s Monetary Policy Committee increased the Official Cash Rate to 5.25% from 4.75% Wednesday in Wellington, wrong-footing most economists who expected a 25-point hike.

Source : Surprise Half-Point Rate Hike by RBNZ Causes Jump in Kiwi