New Zealand’s central bank kept interest rates unchanged for a fourth straight meeting and signaled there’s an increased risk it could them hike again next year. The local dollar jumped.

The Reserve Bank’s Monetary Policy Committee held the Official Cash Rate at 5.5% on Wednesday in Wellington as expected by all 23 economists surveyed by Bloomberg. The bank’s new forecasts show a slightly higher track for the OCR through 2024, implying a chance of an increase, and no reduction until mid-2025.

“Inflation remains too high, and the Committee remains wary of ongoing inflationary pressures,” the RBNZ said. “Interest rates will need to remain at a restrictive level for a sustained period of time.”

Inflation slowed more than expected to 5.6% in the third quarter and investors have been betting the RBNZ will be among global central banks pivoting to rate cuts in 2024, possibly as soon as May. But record immigration and a housing recovery suggest it could take some time for inflation to return to the RBNZ’s 1-3% target band.

The New Zealand dollar rose almost half a US cent after the decision. It bought 61.94 US cents at 2:07 PM in Wellington from 61.49 cents beforehand.