RBNZ Boosts OCR by 25 Basis Points to Combat Rising Inflation

The Reserve Bank of New Zealand has increased its Official Cash Rate (OCR) by 25 basis points to 2.75 percent.

This decision was made by the Monetary Policy Committee in response to inflation rising to 4.1 percent in the June quarter, largely due to higher fuel prices caused by the conflict in the Middle East.

However, core inflation and expected wage growth remain consistent with inflation returning to the 1-3 percent target band by mid-2027 and the 2 percent target midpoint later next year.

The bank's governor noted that New Zealand's economic recovery has likely resumed but remains uneven, with resilient demand from trading partners and strong export prices supporting income growth and investment in export-exposed sectors.