NZX 50 closes 1% higher after RBNZ hikes rates 25 bps
New Zealand equities rose 144 points, or 1.0%, to close at 13,931 on Wednesday, after the RBNZ hiked interest rates by 25 bps and signaled a return of price growth to its 1% to 3% target range.
New Zealand equities rose 144 points, or 1.0%, to close at 13,931 on Wednesday, erasing losses from the previous session, after the RBNZ's monetary policy decision to hike interest rates by 25 bps.
The RBNZ signaled its determination to return price growth to its 1% to 3% target range.
The broader index rebounded from its lowest level since August 17, touched a day earlier, mainly boosted by gains in financials, consumer staples, communication services, and utilities.
Rising oil prices, however, capped the gains, amid heightened inflation concerns and reinforced expectations of an interest rate hike amid escalating Middle East tensions.
On the data front, New Zealand's consumer confidence eased slightly in August, while building permits continued to decline.
Among the top gainers were Chorus (2.7%), Briscoe Group (2.5%), Mercury NZ (2.3%), A2 Milk (2.0%), Meridian Energy (1.5%), ANZ Group (1.3%), Fisher & Paykel (0.9%), and Mainfreight (0.8%).