Reserve Bank of New Zealand raises OCR to 2.5% as Chief Economist Paul Conway warns inflation may peak at 4.3%, with more rate hikes possible in 2026.

The bank has raised floating rates for home and business loans by 25 basis points.

RBNZ Chief Economist Paul Conway says no rapid tightening ahead after the central bank raised rates to 2.50%, signaling a gradual, data-dependent approach.