RBNZ Raises OCR to 2.75% Amid Inflation Concerns

The Reserve Bank of New Zealand (RBNZ) has raised its Official Cash Rate (OCR) by 25 basis points to 2.75%, in line with market expectations.

This is the central bank's second consecutive rate increase, aimed at bringing inflation back down to its 2% target while supporting economic growth and employment.

The RBNZ said it expects New Zealand's economic recovery to strengthen and broaden, driven by resilient demand from trading partners and strong export prices. However, the central bank remains vigilant to the risk that inflation could prove more persistent than expected.