RBNZ Hikes Cash Rate, Warns of Uncertain Economic Road Ahead

The Reserve Bank of New Zealand (RBNZ) lifted its Official Cash Rate by 25 basis points to 2.75%, as expected, following its September meeting.

The Monetary Policy Review noted that the committee sees a gradual removal of monetary stimulus as necessary to return inflation to the 2% target midpoint while supporting growth and employment.

However, the bank stressed that the future OCR path is not predetermined and timing remains highly uncertain.