OCR holds steady, but hikes could come sooner and higher than expected | Stuff.co.nz

The Reserve Bank has again kept the official cash rate on hold at 2.25% but it warns hikes will likely come sooner and be higher than previously expected. In fact, an increase almost came today. The bank is now forecasting inflation to peak at 4.3% in September, up from 3.1% in the March quarter, and it's not great news for the government ahead of budget day tomorrow. However, it can at least point to a cause beyond its control: Donald Trump's war with Iran, which the Reserve Bank says will keep inflation above the target range, and slow our economic recovery. Political Correspondent Zane Small has all of the details. ----------------------------------------------------------------------------------------------------- Stuff NZ is New Zealand’s essential news source — bringing you live, lively and trustworthy journalism from every corner of Aotearoa. Stay informed with breaking news, in-depth stories, and the latest updates that matter to Kiwis. We upload daily, keeping you connected with the people, places and issues shaping New Zealand today. ----------------------------------------------------------------------------------------------------- Social media channels: TikTok:   / nzstuff   Instagram:   / nzstuff