New Zealand Central Bank Raises Rates Amid Global Hawkish Shift

New Zealand's central bank raised its official cash rate by 25 basis points to 2.75% on September 2, marking the second time this year the bank has increased rates.

The move was widely expected, with 27 of 31 economists polled by Reuters forecasting a quarter-point hike. The Reserve Bank of New Zealand (RBNZ) raised rates for the first time in over three years in July, following sticky inflation and signs of economic growth.

The RBNZ emphasized that the decision to tighten monetary policy is gradual and aimed at returning inflation to its 2% target mid-point while supporting growth and employment.