New Zealand’s central bank raises rates by 25 basis points to combat inflation, matching market expectations.
The Reserve Bank of New Zealand increased its Official Cash Rate by 25 basis points to 2.50%, effective immediately. The move aligns with widespread forecasts as policymakers aim to curb persistent inflationary pressures in the economy.
The decision follows a prior 25 bps hike in May, bringing the OCR to its highest level since 2016. Analysts had anticipated the increase, citing strong domestic demand and rising wage growth as key drivers.
Markets showed little reaction, with the NZD/USD pair holding steady near pre-announcement levels.