The central bank of New Zealand raised its key interest rate by a quarter of a percent on 9 July 2026. The move ends a hiatus that began in 2023. In reaction, the nation’s biggest banks lifted their own lending rates. ASB Bank said the hike marks the end of the era of historic mortgage rates. Analysts at UBS said the rate rise puts further pressure on the currency and anticipate more adjustments later this year. The policy change aims to move toward a more neutral stance.