RBNZ Eyes Pause on OCR Hikes Amid Uneven Recovery

RBNZ Governor Anna Breman hinted at a possible pause in OCR increases when the Official Cash Rate is next reviewed in October.

The RBNZ raised the OCR to 2.75% from 2.50% on Wednesday, citing a need to reduce inflation and support growth and employment.

Breman said the economy was recovering but unevenly, with some sectors doing well while others struggled with higher fuel prices.

The RBNZ's chief economist, Paul Conway, noted that indicators of medium-term inflation pressure were key, calling it a 'delicate balance' between supporting growth and preventing price shocks from becoming generalised inflation.