The central bank of New Zealand raised its Official Cash Rate by a quarter of a percent on 9 July 2026. The decision ends a hiatus that began in 2023. In reaction, the nation’s biggest banks lifted their own interest rates. ASB Bank said the increase marks the end of the period of record-low mortgage rates. Analysts at UBS said the rate rise puts added strain on the New Zealand dollar and expect more adjustments later this year. The policy change aims to move toward a more neutral stance.