Forex
RBNZ Hikes OCR by 25 Basis Points to 2.75%
The Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) by 25 basis points to 2.75% on Wednesday, as widely expected.
RBNZ Governor Anna Breman said the key question is whether economic recovery broadens as expected, and that the OCR track is very similar to one they had in May.
Breman emphasized that inflation can be brought down while supporting the economy, and moving the OCR up towards neutral remains accommodative.
The RBNZ expects New Zealand's export sector to remain resilient and household spending to gradually increase, with conditions in the labour market expected to improve.