NZ lifts cash rate as Iran war boosts inflation
New Zealand’s official cash rate was raised by 25 basis points, the second consecutive increase. June-quarter inflation hit 4.1%. Policymakers said the move reduces the risk of larger later hikes and were dovish on the future rate path.
The widely expected 25 basis point increase in the official cash rate, the second in a row, followed inflation that reached 4.1% in the June quarter. Policymakers said the latest increase would reduce the risk of needing to raise rates by a larger amount later, and they struck a dovish tone on the future path of rates.