The Reserve Bank of New Zealand raised its key interest rate by a quarter of a percent on 9 July 2026. The decision ends a pause 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 era of historic mortgage rates. Analysts at UBS said the policy shift puts added strain on the New Zealand dollar and anticipate more rate moves later this year. The central bank’s action aims to move toward a balanced position.