RBNZ keeps OCR unchanged at 2.75% (exp. 25bps hike to 3.00%) with the decision made by 4-3 vote

Says: Members agreed on the inflation outlook but differed in their assessment of risks. Global developments are adding to inflationary pressures. Members differed in the weight assigned to various risks and the timing of the monetary policy response. Committee agreed that tighter monetary policy is likely to be required, but remains dependent on the economic outlook. New Zealand's recovery could be stronger than anticipated but may lose momentum if the global environment deteriorates. Committee remains focused on returning inflation to the 2% target midpoint over the medium term. RBNZ Minutes: Further OCR increases are likely, but remain dependent on the economic outlook. Four members (Breman, Hansen, Gai and Williams) voted to hold the OCR, while three members (Conway, Gourley and Silk) voted for an increase. Sustained higher refined fuel prices and currency depreciation could lead to larger indirect inflationary effects. There is a risk that inflation becomes entrenched before conventional inflation expectations measures respond, despite the previous two OCR hikes. Some domestic financial conditions have eased amid a lower exchange rate and declines in certain term lending rates. Committee remains focused on the medium-term inflation outlook.