RBNZ Expected to Hike Interest Rates Again Amid Uncertain Economic Environment

The Reserve Bank of New Zealand (RBNZ) is expected to raise its Official Cash Rate (OCR) by another 25 basis points from 2.50% to 2.75% on Wednesday, according to experts.

This decision comes after the RBNZ's July monetary policy meeting, where it said 'with inflation still above target and economic activity expected to strengthen, some further reduction in monetary stimulus is likely to be required to return inflation to the 2 percent target mid-point.'

Headline inflation was 4.1% year-on-year in the June quarter, exceeding the central bank's 3.9% forecast.

The RBNZ's interest rate announcement will be accompanied by the Monetary Policy Review (MPR), Monetary Policy Statement (MPS) and the Minutes of the meeting.