May 29 (Reuters) – Reserve Bank of New Zealand Governor Anna Breman said on Friday interest rates were likely to increase sooner and by more than previously signalled to combat inflation.
The central bank held the official cash rate (OCR) steady this week at 2.25% after Breman used her casting vote to break a 3-3 split among monetary policy committee members.
“The committee remains focused on ensuring inflation returns to target while avoiding unnecessary volatility in the economy,” Breman said.
“On balance, the OCR is likely to increase sooner and by more than previously signalled.”
(Reporting by Christine Chen in Sydney; Editing by Muralikumar Anantharaman)
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