NZ Raises OCR 25 BPS to 2.75%

New Zealand's Monetary Policy Committee has raised the Official Cash Rate (OCR) by 25 basis points to 2.75% in a bid to bring inflation back within its target range.

June quarter inflation rose to 4.1%, primarily driven by higher fuel prices resulting from conflict in the Middle East.

The Committee expects inflation to return to the 1-3% target band by mid-2027 and to 2% by the end of next year, with core inflation and expected wage growth remaining consistent with this outlook.