New Zealand Interest Rate Hike
July 8, 2026
The Reserve Bank of New Zealand’s Official Cash Rate today was lifted 25 basis points to 2.50% in an expected move that reverses a cut of that size made last November that had been the final element of a nine-step easing cycle that began in August 2024 and that totaled 325 basis points. Explaining today’s decision, a statement released by the RBNZ asserts
Although energy prices have decreased, the effects of the shock will linger for some time and the outlook for medium-term inflation pressures remains uncertain. With inflation [3.1% in the last two reported quarters] still above target and economic activity expected to strengthen, some further reduction in monetary stimulus is likely to be required to return inflation to the 2 percent target mid-point.
Copyright 2025, Larry Greenberg. All rights reserved.
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