WELLINGTON, July 8 (Xinhua) -- New Zealand's central bank raised its benchmark interest rate on Wednesday, lifting the official cash rate by 25 basis points to 2.5 percent.
The move aims to return inflation to its 2 percent midpoint target, said a statement from the Monetary Policy Committee of the Reserve Bank of New Zealand.
The committee said easing global oil and petrochemical prices, following the partial reopening of the Strait of Hormuz, has reduced near-term inflation pressures. However, it warned that the effects of the earlier energy shock will linger, leaving medium-term inflation uncertain.
The bank noted that global growth has remained resilient despite tariffs and the Middle East conflict, supported by strong investment in artificial intelligence and economic security.
New Zealand's recovery lost momentum in the June quarter as higher oil prices weighed on economic activity, but growth is expected to resume in the September quarter, the statement said.
The committee signaled that further tightening may be needed, with future decisions dependent on incoming economic data and inflation trends. ■
