RBNZ Hikes Cash Rate, Warns of Elevated Inflation

The Reserve Bank of New Zealand (RBNZ) has increased the Official Cash Rate (OCR) by 25 basis points to 2.75 percent, with Governor Anna Bremen stating that further hikes are possible but not guaranteed.

Bremen said the decision will allow the RBNZ to assess the impact of the two OCR increases and determine whether additional hikes are needed to move the rate towards a neutral level of around 3 percent.

No timeline was given for when the RBNZ would reach this target, with Bremen saying that 'nothing's set in stone'.