RBNZ Raises Rates Again Amid Resurgent Inflation Fears

The Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) by 25 basis points to 2.75%, marking a second consecutive rate hike.

This decision was in line with market expectations, and 27 out of 31 economists polled by Reuters had forecasted the same move.

The RBNZ cited resurgent inflation as the reason for the rate increase, aiming to steer price growth back into the 1-3% target range.

While the rate hike itself was expected, a downward revision in the Q4 inflation forecast from 4.1% to 3.9% contributed to NZ dollar selling in the market.