RBNZ Raises OCR by 25 Basis Points Amid Ongoing Inflation Concerns

New Zealand's Reserve Bank raised its Official Cash Rate by 25 basis points to 2.75 percent on September 2, in a move that aims to gradually remove monetary stimulus from the economy.

The decision was made after annual inflation rose to 4.1 percent in the June quarter, driven largely by higher fuel prices resulting from the ongoing Middle East conflict.

RBNZ Governor Breman stated that a further OCR increase is likely, and that the central bank will assess the impact of hikes already delivered.