New Zealand Central Bank Raises Official Cash Rate to 2.75% Amid Rising Inflation

The Reserve Bank of New Zealand (RBNZ) has increased its official cash rate by 25 basis points to 2.75%. This decision follows a rise in annual inflation to 4.1% in the June quarter, primarily driven by higher fuel prices linked to the Middle East conflict. The Monetary Policy Committee stated that gradually removing monetary stimulus is necessary to bring inflation back to its 2% target while supporting economic growth and employment.