RBNZ Raises OCR to 2.75% Amid Uncertainty Over Further Hikes

The Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) to 2.75% from 2.50%, with Governor Anna Breman saying it's likely there will be a further increase, but the timing is highly uncertain.

According to Breman, the RBNZ is gradually removing monetary stimulus to reduce inflation to its 2% target midpoint and support growth and employment.

Inflation as measured by Statistics NZ's Consumers Price Index was 4.1% in the June quarter, New Zealand's highest annual inflation rate since December 2023.

RBNZ chief economist Paul Conway said there is a lot going on in the NZ economy currently, making it reasonable for the committee to remain flexible and change its strategy as economic conditions evolve.