RBNZ Raises Rates Again, Warns More Hikes May Come

The Reserve Bank of New Zealand (RBNZ) raised its Official Cash Rate (OCR) by 25 basis points to 2.75% on Wednesday, a second consecutive increase agreed by consensus across the Monetary Policy Committee.

Market expectations had fully priced in this move, but the weight of the statement lies elsewhere, in a warning that the OCR may need to rise again this year while household spending remains subdued.

The RBNZ cited 4.1% headline inflation as the main driver of the decision, though excluding vehicle fuels, annual CPI inflation eased to 2.9% in the June quarter.