RBNZ Hikes OCR to 2.75%, Traders Disappointed by Gradual Tightening Path

The Reserve Bank of New Zealand (RBNZ) hiked its Official Cash Rate (OCR) to 2.75% on Wednesday, but the move failed to boost the NZD/USD pair as traders expected a faster tightening path.

RBNZ Governor Anna Breman said gradual removal of monetary stimulus remained appropriate to return inflation to target while still supporting growth and employment.

Breman emphasized that after two consecutive rate hikes, the Bank can now take time to assess how policy has affected the economy.

The RBNZ is comfortable holding at current settings for now, but reserves the option to respond again if oil-driven inflation pressures or unanchored expectations force its hand.