RBNZ Expected to Hike OCR by 25 bps to 2.50%

The Reserve Bank of New Zealand (RBNZ) is set to announce its latest monetary policy decision on Wednesday, with markets pricing in a 25-basis-point increase in the Official Cash Rate (OCR) to 2.50%. This would break a streak of three consecutive meetings where rates were held steady.

The move is seen as a potential repeat of the knife-edge decision in May, when the RBNZ surprised some analysts. A hike now would signal the central bank's continued concern over inflation pressures, despite a slowing global economy.

Traders are watching the New Zealand dollar closely, as a rate rise could provide near-term support for the currency. The decision is due at 2:00 p.m. local time.