Breaking: RBNZ Raises OCR By 50bp to 3.00% as expected, kiwi pops to 0.6365

As expected, the RBNZ lifted the Official Cash Rate by 50bp from 2.5% to 3.0% and the statement is signalling further tightening ahead.

NZD/USD has rallied by some 35 pips to a session high of 0.6365.

RBNZ quarterly statement

• Conditions need to continue to tighten
• Core consumer price inflation remains too high and labour resources remain scarce 
• Range of indicators highlight broad-based domestic pricing pressures.

There is plenty to absorb in the quarterly statement...more to come.

Markets will be tuning into Governor Adrian Orr’s press conference later in the day. 

About the RBNZ interest rate decision

RBNZ Interest Rate Decision is announced by the Reserve Bank of New Zealand. If the RBNZ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the NZD.