Reserve Bank of New Zealand: As inflation remains above target and economic activity is expected to strengthen, it may be necessary to further reduce monetary stimulus to bring the inflation rate back to the 2% target midpoint.

Future official cash rate (OCR) decisions will depend on new data, pricing behavior, and the impact of economic activity intensity on medium-term inflation pressures. The Monetary Policy Committee reached a consensus today and decided to raise the official cash rate (OCR). The outlook for medium-term inflation pressures depends on the extent to which recent cost increases are translated into higher prices. Although energy prices have declined, the impact of the shock will persist for some time, and the medium-term inflation outlook remains uncertain. The stance of monetary policy is carefully calibrated to return the inflation rate to the target level while avoiding unnecessary economic instability.