New Zealand’s central bank lifts rates to 2%, the highest level since 2016

Reserve Bank resolute in its commitment' to keep inflation in the 1-3% target range, signalling further rate rises may still be needed

New Zealanders could feel rising living costs bite down harder in the next few months, as the central bank lifts interest rates by half a percentage point to 2% - its highest level since 2016.

The increase matches expectations and is the second rate hike in two months as the Reserve Bank (RBNZ) attempts to rein in inflation, now at a 30-year high.