WELLINGTON, May 22 (Xinhua) -- New Zealand's official cash rate remains at 5.5 percent to further contain inflation, the Reserve Bank's Monetary Policy Committee said on Wednesday.

Restrictive monetary policy has reduced capacity pressures in the New Zealand economy and lowered consumer price inflation, the committee said.

Annual consumer price inflation is expected to return to within the committee's 1 percent to 3 percent target range by the end of 2024, it said, adding that the decline in inflation in part reflects lower inflation for goods and services imported into New Zealand.

Although international consumer price inflation has declined from 30-year highs in many advanced economies, services inflation is receding slowly, and expected policy interest rate cuts continue to be delayed, the committee said.

It warned that a slow decline in New Zealand's domestic inflation, such as higher dwelling rents, insurance costs, council rates, and other domestic services price inflation, poses a risk to inflation expectations.

The committee agreed that monetary policy needs to "remain restrictive" to ensure inflation returns to target within a reasonable timeframe. Editem

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