RBNZ Hikes Cash Rate Again, Flags Gradual Tightening

New Zealand's central bank raised its official cash rate by 25 basis points to 2.75 percent on Wednesday, as expected.

The Reserve Bank of New Zealand (RBNZ) flagged further tightening, but emphasized it would be gradual and saw significant downside risks to the economy.

This move was widely anticipated, with 27 out of 31 economists polled by Reuters forecasting a quarter-point hike.

The RBNZ raised rates for the first time in more than three years in July, after inflation proved sticky and signs emerged that the economy was regaining traction.