The Central Bank of New Zealand raised interest rates as anticipated on Wednesday and declared that persistent inflation will cause rates to stay higher for longer.

As anticipated by most analysts, the RBNZ increased its official cash rates (OCR) by twenty-five basis points (bps) to 5.5%. After a cumulative 525 bps rate increase by the bank since mid-2021.

The primary quarter of 2023 saw annual consumer inflation of 6.7 percent, more than above the bank’s goal range. However, it was also less than a high of nearly 7 percent reached in the Dec quarter.

However, the RBNZ also issued a warning that the pace of economic development was expected to decrease in the ensuing quarters,

However, the RBNZ noted that some aspects of the economy continue to be robust. Following the relaxation of anti-COVID restrictions last year

The RBNZ stated that while the trend is anticipate to assist economic growth over the next several months. It is also anticipated to change as monetary conditions tighten.