NZD/USD Climbs After RBNZ Rate Hike

New Zealand Dollar, Reserve Bank of New Zealand, Rate Hike, Inflation – Talking Points

  • The Reserve Bank of New Zealand hikes its OCR by 25 basis points
  • New Zealand Dollar at risks given lofty rate hike bets despite threats
  • Persistent inflation threat on the radar for RBNZ policymakers

The Reserve Bank of New Zealand (RBNZ) kicked off a tightening cycle Wednesday after raising its official cash rate (OCR) by 25 basis points. That brings the OCR from 0.25% to 0.50% and marks only the second rate hike from a G10 central bank since the Covid pandemic began. The first was Norges Bank. The New Zealand Dollar ticked higher versus the US Dollar immediately following the news.

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— Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwater on Twitter


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