RBNZ Hikes OCR by 25 Basis Points Amid Inflation Concerns

The Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) by 25 basis points to 2.75% in a move aimed at bringing inflation back within its target range.

This increase follows a 4.1% rise in inflation in the June quarter, driven primarily by higher fuel prices stemming from the conflict in the Middle East.

The RBNZ anticipates that inflation will return to its midpoint of 2% by the end of next year and within the 1-3% target range by mid-2027.