25 basis points of interest increase for the New Zealand Federal Reserve and reduced risk of future interest rate increases

THE FED OF NEW ZEALAND UNANIMOUSLY DECIDED TO INCREASE THE OFFICIAL CASH INTEREST RATE (OCR) BY 25 BASIS POINTS TO 2.75 PER CENT. ACCORDING TO THE FEDERAL RESERVE OF NEW ZEALAND, INFLATION ROSE TO 4.1 PER CENT IN THE CURRENT QUARTER OF JUNE AS A RESULT OF FUEL PRICE INCREASES DUE TO THE MIDDLE EAST CONFLICT. CORE INFLATION RATES, EXPECTED WAGE INCREASES AND INFLATION EXPECTATIONS REMAIN CONSISTENT WITH THE TARGET RANGE OF 1 TO 3 PER CENT BY MID-2027. NEW ZEALAND ' S ECONOMY IS LIKELY TO RECOVER AFTER WEAK GROWTH DURING THE JUNE SEASON, BUT RECOVERY REMAINS UNEVEN. THE ECONOMIC RECOVERY IS EXPECTED TO BE FURTHER STRENGTHENED AND EXPANDED. THE GLOBAL ECONOMY FACES SIGNIFICANT RISKS THAT COULD AFFECT COMMODITY PRICES AND EXPORT DEMAND. THE COMMITTEE WILL REMAIN VIGILANT AND, WHERE NECESSARY, TAKE ACTION TO ENSURE THAT INFLATION CONTINUES TO RETURN TO THE 2 PER CENT MID-POINT TARGET IN THE MEDIUM TERM。