RBNZ Hikes OCR to 2.50% in First Increase in Three Years

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate by 25 basis points to 2.50% at 02:00 GMT on Wednesday. This is the first hike in three years, signaling a pivot from the bank that cut deeper than any G10 peer during the last cycle.

The move is described as a wager on a figure that remains uncertain, likely referring to inflation expectations. The RBNZ's decision underscores a shift toward tighter policy as the economy adjusts to post-pandemic conditions.