RBNZ to Continue Raising Rates as Inflation Hits 4.1%

The Reserve Bank of New Zealand (RBNZ) is likely to continue raising interest rates due to rising inflation, according to economists. Inflation rose to 4.1% in Q2, driven partly by petrol prices.

Higher petrol prices accounted for around a quarter of the latest annual rise in the Consumer Price Index (CPI), which also saw a 12% annual rise in electricity and roughly 9% for council rates.

The RBNZ is likely to keep pushing the Official Cash Rate back up to neutral, with another rise in September still seeming likely. This suggests that mortgage rates are at risk of increasing, as well.