27/05/2026
The Monetary Policy Committee today voted to hold the Official Cash Rate (OCR) at 2.25%.
• Prior to The Middle East conflict, New Zealand was showing signs of economic recovery. The conflict is increasing near-term inflation and weakening economic activity.
• Inflation is expected to peak at 4.3% in the September quarter and return to the 2% target mid-point in mid-2027.
• The OCR will likely need to increase sooner, and by more than we expected in February to ensure inflation returns to target in the medium-term.