RBNZ holds OCR at 2.25% due to split vote
The Reserve Bank of New Zealand maintained its official cash rate at 2.25% after a split vote among committee members.
The decision was made by the governor’s casting vote, as three members voted to hold the rate and three voted for a 25 basis point increase.
Inflation is forecast to peak at 4.3% in the September quarter, with the OCR track revised sharply higher to prevent near-term inflation pressures.
The terminal rate is seen at 3.28% in June 2029, indicating potential future rate hikes.