By James GlynnSYDNEY--The Reserve Bank of New Zealand signaled that interest rates might need to remain restrictive for higher than expected due to stubborn inflation, delivering a hawkish shock to money markets. The New Zealand dollar jumped by half a U.S. cent after the statement. The RBNZ is putting less weight on the softer data than most expected," said Sharon Zollner, chief economist at ANZ. New Zealand's farm-rich economy has been in a sustained recession over the last year, with unemployment rising sharply in the first quarter. Write to James Glynn at james.glynn@wsj.com; @JamesGlynnWSJ(END) Dow Jones NewswiresMay 21, 2024 23:07 ET (03:07 GMT)Copyright (c) 2024 Dow Jones & Company, Inc.

Source: Wall Street Journal May 22, 2024 03:54 UTC