The Reserve Bank of New Zealand just raised interest rates for the first time since 2023, and its chief economist is already telling everyone to calm down about what comes next.
Paul Conway, the RBNZ’s chief economist, clarified that the central bank is not discussing a move to tighter policy beyond the recent adjustment.
The rate hike in context
On July 8, 2026, the RBNZ’s Monetary Policy Committee unanimously voted to raise the Official Cash Rate by 25 basis points to 2.50%.
The OCR had been on a steady descent for the better part of two years. It peaked at 5.5% in 2024, then the central bank spent months cutting it down to 2.25% as part of a prolonged easing cycle that began in 2021.
