The RBNZ raised the Official Cash Rate (OCR) by 0.25% at its 12 June meeting, to 3.25%. It remained committed to the process of ‘normalising’ the OCR, from historic lows, as quickly as practical. The Bank’s published 90-day bank bill track was almost identical to the March MPS, still suggesting an OCR at 5.00% by late-2016. It expects inflationary pressures to increase and is therefore acting pre-emptively to keep average future inflation near its 2% target mid-point.
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