Inflation in New Zealand hit a new high in more than 30 years in the first quarter

"At present, households and businesses expect inflation to remain strong for some time. For the Bank of New Zealand, if inflation continues for a longer time, it means that it needs to be curbed by more substantial interest rate hikes," said Satish lancaud, senior economist at Westpac bank

In order to curb inflation, the Bank of New Zealand announced on the 13th of this month that it would raise the benchmark interest rate by 50 basis points to 1.5%. This is the fourth consecutive interest rate increase since October 2021 and the first single interest rate increase of 50 basis points since May 2000.
Covid-19, New Zealand's central bank said that the damage to the global supply chain was aggravated by the outbreak of the new crown pneumonia and the conflict between Russia and Ukraine. The global inflationary pressure has greatly pushed up global commodity and energy prices, leading to a continuous downturn in consumer confidence in New Zealand and a rising consumer price index. Investors expect the Bank of New Zealand to raise interest rates by 50 basis points to 2% with an 80% probability, compared with 75% before the CPI data.