The RBNZ raised the official cash rate (OCR) 25bps to 2.75%. It said fuel-driven inflation in the quarter to June rose to 4.1%, while core inflation, expected wage growth and inflation expectations remain consistent with inflation returning to the 1–3% target range by mid-2027 and the 2% midpoint by late next year. After weak growth in the June quarter, the economy has likely resumed an uneven recovery the bank expects to strengthen and broaden. Global risks could alter commodity prices and expo

The RBNZ raised the official cash rate (OCR) 25bps to 2.75%. It said fuel-driven inflation in the quarter to June rose to 4.1%, while core inflation, expected wage growth and inflation expectations remain consistent with inflation returning to the 1–3% target range by mid-2027 and the 2% midpoint by late next year. After weak growth in the June quarter, the economy has likely resumed an uneven recovery the bank expects to strengthen and broaden. Global risks could alter commodity prices and export demand; the recovery could be stronger or weaker than expected and price pressures could cause inflation to persist longer. The committee will remain vigilant and act if necessary to ensure inflation returns to the 2% midpoint in the medium term. It said gradual withdrawal of policy stimulus is appropriate to return inflation to target while supporting growth and employment, and that today’s decision lowers the risk that further large rate hikes will be needed; future policy will depend on the committee’s assessment of the balance of medium‑term inflation risks.