Reserve Bank Raises Official Cash Rate to 2.75%

The Reserve Bank of New Zealand has increased the Official Cash Rate (OCR) by 25 basis points to 2.75%, aiming to return inflation to the 2% target midpoint by late 2027. The decision reflects:

• Current inflation at 4.1%, driven by higher fuel prices.
• Resilient demand from trading partners supporting economic recovery.
• Uneven domestic growth, with strong export sectors but weak household spending.

The Monetary Policy Committee remains vigilant to global economic risks and is prepared to adjust monetary policy as necessary to achieve its inflation targets.