Reserve Bank Hikes Interest Rates Amid Strengthening Economic Recovery

The Reserve Bank of New Zealand has announced a 0.25 basis point increase in the Official Cash Rate to 2.75 per cent, citing an expected strengthening and broadening of the economic recovery.

Finance Minister Nicola Willis welcomed this assessment, stating that 'the bank's assessment demonstrates the economy has proved to be more resilient in the face of the Middle East conflict than many commentators thought.'

The Reserve Bank expects the export sector to remain resilient and household spending to increase, with purchasing power also expected to rise as inflation returns to its target range.