The Reserve Bank of New Zealand decided at its monetary policy meeting on the 2nd to raise the policy rate by 0.25% to 2.75%. Amid accelerating inflation, it stated that 'a gradual removal of monetary stimulus is appropriate,' signaling a tightening stance. This marks the second consecutive rate hike. New Zealand's inflation rate for the April-June quarter came in at 4.1%, exceeding market expectations, partly due to higher oil prices following the exchange of attacks between the US and Iran. The central bank expects inflation to remain elevated for the rest of the year and return to the midpoint target of 2% in the latter half of next year. It also indicated that 'further rate hikes may be necessary' regarding future interest rate movements.
RBNZ raises rates, signaling further hikes, pushing yields up
